Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 3207, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to change the ethanol investment tax credit to an ethanol facility tax credit.

Your Committee finds that changing the ethanol investment tax credit to an ethanol facility tax credit will encourage the construction of large-capacity ethanol production facilities in the State. The expected construction will not only benefit the building industry and in turn the State's economy, but will dramatically impact the use of alternative fuels to ultimately provide a cleaner environment and reduce the State's dependence on fossil fuels.

Your Committee has amended the bill:

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3207, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3207, S.D. 2.