STAND. COM. REP. NO. 1491
Honolulu, Hawaii
, 2005
RE: S.B. No. 1695
S.D. 2
H.D. 2
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Third State Legislature
Regular Session of 2005
State of Hawaii
Sir:
Your Committee on Finance, to which was referred S.B. No. 1695, S.D. 2, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO CAPITAL INVESTMENTS,"
begs leave to report as follows:
The purpose of this bill is to support emerging and expanding businesses in Hawaii by:
(1) Authorizing the Hawaii Strategic Development Corporation (HSDC) to transfer tax credits and increasing the total amount of contingent tax credits that HSDC may transfer; and
(2) Adding insurance premium taxes to the list of taxes for which tax credits may be issued,
to fulfill the purposes of Act 215, Session Laws of Hawaii 2004, which established the State Private Investment Fund and extended and improved certain tax incentives developed for the high technology industry.
HSDC, Hawaii Venture Capital Association, Hawaii Technology Trade Association, International Venture Fund, Hawaii Pacific Health, Hawaii Biotech, Inc., Nanopoint, Mele Associates, Inc., HiBEAM, Oceanit, Enterprise Honolulu, Hoana Medical, Hawaiian Electric Industries, Inc., and a concerned individual testified in support of this bill. The Department of Business, Economic Development, and Tourism and High Technology Development Corporation supported the intent of this measure. The Tax Foundation of Hawaii provided comments.
Your Committee has amended this bill by:
(1) Clarifying that the Legislature does not need to give authorization to transfer tax credits on an annual basis;
(2) Appropriating funds out of the Capital Formation Revolving Fund to be expended by HSDC to carry out the purposes of chapter 211G, Hawaii Revised Statutes;
(3) Inserting a provision to cover constitutional provisions on guarantees; and
(4) Making technical, nonsubstantive amendments for clarity and style.
As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1695, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1695, S.D. 2, H.D. 2.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ DWIGHT TAKAMINE, Chair |
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