STAND. COM. REP. NO. 1342
Honolulu, Hawaii
RE: H.B. No. 506
H.D. 1
S.D. 1
Honorable Colleen Hanabusa
President of the Senate
Twenty-Fourth State Legislature
Regular Session of 2007
State of Hawaii
Madam:
Your Committee on Economic Development and Taxation, to which was referred H.B. No. 506, H.D. 1, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO ETHANOL,"
begs leave to report as follows:
The purpose of this measure is to extend the tax credit for qualified ethanol production facilities for five years from January 1, 2012, to January 1, 2017.
Testimony in support of this measure was received from the Department of Business, Economic Development, and Tourism and Alexander & Baldwin, Inc. The Department of Taxation (Department) and the Tax Foundation of Hawaii submitted comments on this measure.
Your Committee received a revenue impact statement from the Department that the projected average revenue loss for fiscal year 2012 through fiscal year 2017 is less than $11,000 annually. In their methodology, the Department stated that the total amount claimed in 2004 was $8,078, and inflation rates were applied to determine these projections. The Department also stated that should additional ethanol production facilities be developed, the revenue loss would increase. Your Committee has not heard, however, that any additional facilities have moved beyond the "possible" stage.
Your Committee notes that the effective date of this measure is July 1, 2050, which will allow for continuing discussion as additional information may become available.
As affirmed by the record of votes of the members of your Committee on Economic Development and Taxation that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 506, H.D. 1, S.D. 1, and recommends that it be referred to the Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Economic Development and Taxation,
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____________________________ CAROL FUKUNAGA, Chair |
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