STAND. COM. REP. NO. 966-04
Honolulu, Hawaii
, 2004
RE: S.B. No. 3207
S.D. 2
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Second State Legislature
Regular Session of 2004
State of Hawaii
Sir:
Your Committee on Energy and Environmental Protection, to which was referred S.B. No. 3207, S.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO ETHANOL TAX CREDIT,"
begs leave to report as follows:
The purpose of this bill is to encourage the construction of large-capacity ethanol production facilities in the state by changing the ethanol investment tax credit to an ethanol facility tax credit.
ILWU Local 142 and a concerned individual supported this bill. The Department of Taxation (DOTax) and Maui Ethanol supported this measure with amendments. The Department of Business, Economic Development, and Tourism and the Tax Foundation of Hawaii submitted comments.
Your Committee has amended this bill by:
(1) Calculating the tax credit according to the nameplate capacity of the facility instead of by the investment amount;
(2) Clarifying references to section 263A of the Internal Revenue Code, as recommended by DOTax;
(3) Deleting the definition of "qualifying ethanol production" and inserting the substance of its contents into the definition of "qualifying ethanol production facility";
(4) Changing its effective date; and
(5) Making technical, nonsubstantive amendments for clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Energy and Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3207, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3207, S.D. 2, H.D. 1, and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Energy and Environmental Protection,
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____________________________ HERMINA M. MORITA, Chair |
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