STAND. COM. REP. NO. 3404
Honolulu, Hawaii
RE: H.B. No. 2412
H.D. 1
S.D. 1
Honorable Robert Bunda
President of the Senate
Twenty-Third State Legislature
Regular Session of 2006
State of Hawaii
Sir:
Your Committee on Ways and Means, to which was referred H.B. No. 2412, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO CONFORMITY OF THE HAWAII INCOME TAX LAW TO THE INTERNAL REVENUE CODE,"
begs leave to report as follows:
The purpose of this measure is to conform the Hawaii income tax law to the Internal Revenue Code.
Your Committee finds that this administrative measure is required under state law and was submitted by the Department of Taxation to conform Hawaii's income tax law to recent changes in the federal income tax law.
Specifically, this measure exempts Hawaii income tax law from the following Internal Revenue Code sections:
(1) 1400O, relating to education tax benefits;
(2) 1400P, relating to housing tax benefits;
(3) 1400R, relating to employment relief; and
(4) 1400T, relating to special rules for mortgage revenue bonds.
The measure also adopts Internal Revenue Code sections:
(1) 1400N, relating to tax benefits for the Gulf Opportunity Zone; except that subsections 1400N(a), 1400N(b), 1400N(d), 1400N(e), 1400N(h), 1400N(l), 1400N(m), and 1400N(n) shall not be operative for the purposes of the state income tax law; and
(2) 1400S, relating to additional tax relief provisions; except that subsection 1400S(d) shall not be operative for the purposes of the state income tax law.
Your Committee has amended the measure by:
(1) Deleting section 2 of the measure, which does not contain any amendments and renumbering the measure's section numbers accordingly;
(2) Limiting the applicability of section 235-2.45(h), Hawaii Revised Statutes, to contributions made between August 29 to December 31, 2005;
(3) Changing the effective date of the bill to July 1, 2050, to foster continuing discussion on this matter; and
(4) Making technical amendments for the purposes of clarity and style.
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 H.B. No. 2412, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2412, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
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____________________________ BRIAN T. TANIGUCHI, Chair |
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