STAND. COM. REP. NO.  1895

Honolulu, Hawaii

                , 2007

RE:   S.B. No. 1222

      S.D. 3

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 1222, S.D. 3, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INCOME TAXATION,"

begs leave to report as follows:

     The purpose of this bill is to clarify that the renewable energy tax credit applies only to renewable energy technology systems that are installed and placed in service within the state. 

     The Hawaii Energy Policy Forum and the Hawaii Renewable Energy Alliance testified in support of this bill.  The Department of Taxation supported the intent of this measure.  The Tax Foundation of Hawaii provided comments.

     Your Committee has amended this bill by:

(1)  Changing the effective date to apply to taxable years after December 31, 2007; and

(2)  Making technical, nonsubstantive amendments for style, clarity, and consistency.

     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. 1222, S.D. 3, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1222, S.D. 3, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair