STAND. COM. REP. NO. 1061
Honolulu, Hawaii
, 2005
RE: H.B. No. 955
H.D. 1
S.D. 1
Honorable Robert Bunda
President of the Senate
Twenty-Third State Legislature
Regular Session of 2005
State of Hawaii
Sir:
Your Committee on Water, Land, and Agriculture, to which was referred H.B. No. 955, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO DROUGHT MITIGATING FACILITIES,"
begs leave to report as follows:
The purpose of this measure is to promote the construction of drought mitigating facilities.
Testimony in support of this measure was submitted by the Department of Agriculture, Department of Taxation, Hawaii Agriculture Research Center, Hawaii Crop Improvement Association, Hawaii Farm Bureau Federation, Maui County Farm Bureau, and Pineapple Growers Association of Hawaii. Comments were also submitted by the Department of Land and Natural Resources and the Tax Foundation of Hawaii.
Your Committee finds that farmers and ranchers suffer great losses to their crops and livestock during periods of drought. These losses often take farmers and ranchers years to recover. However, these losses can be minimized by the construction of water storage facilities to alleviate water problems during times of drought. Thus, this measure promotes the construction of water storage facilities by:
(1) Increasing the tax credit amount to an unspecified percentage; and
(2) Repealing the date after which the tax credit is no longer available; and
(3) Including the cost of new equipment related to the construction or repair of ancillary structures as a cost that qualifies for the tax credit.
Your Committee has amended this measure by:
(1) Inserting a tax credit percentage of twenty percent;
(2) Extending, rather than repealing, the cut off date for the tax credit;
(3) Including a definition for "ancillary structures"; and
(4) Making technical, nonsubstantive changes for style and consistency.
As affirmed by the record of votes of the members of your Committee on Water, Land, and Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 955, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 955, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Water, Land, and Agriculture,
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____________________________ RUSSELL S. KOKUBUN, Chair |
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