STAND. COM. REP. NO.87

Honolulu, Hawaii

, 2003

RE: S.B. No. 431

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Energy and Environment, to which was referred S.B. No. 431 entitled:

"A BILL FOR AN ACT RELATING TO CLEAN FUEL VEHICLES,"

begs leave to report as follows:

The purpose of this measure is to provide for a tax credit for the purchase of clean fuel vehicles in taxable years beginning after December 31, 2002. If the credit claimed exceeds the amount of the income tax payments due, the excess of the credit may be used in subsequent years until exhausted.

Testimony in support of this measure was submitted by the Department of Business, Economic Development, and Tourism. Comments on this measure was submitted by the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that a tax credit for the purchase of clean fuel vehicles would encourage the purchase of alternative fuel vehicles as well as hybrid vehicles. Federal law currently allows an income tax deduction for the purchase of clean fuel vehicles. Clean fuels include natural gas, liquefied natural and petroleum gas, hydrogen, electric, or any fuel which is at least 85% alcohol or ether.

Your Committee has amended this measure in the following manner:

(1) Adding the title of section 179A of the Internal Revenue Code; and

(2) Clarifying that any excess credit allowable under the measure, may be used as credit against the taxpayer's income tax liability in subsequent years until exhausted.

As affirmed by the record of votes of the members of your Committee on Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 431, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 431, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Energy and Environment,

____________________________

J. KALANI ENGLISH, Chair