Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Economic Development & Business Concerns, to which was referred H.B. No. 604 entitled:

begs leave to report as follows:

The purpose of this bill is to strengthen the State's science and technology base to sustain the development and growth of new technology-intensive businesses by proposing the establishment of a 20 percent business-research institute tax credit.

The Department of Business, Economic Development, and Tourism, the Hawaii Technology Trade Association, and an individual testified in support of this measure. The Department of Taxation and Kamehameha Schools supported the intent of this bill.

Your Committee finds that establishing a business-research institute credit will help in capital formation for developing and commercializing scientific research.

As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 604 and recommends that it pass Second Reading and be referred to the Committee on Finance.