STAND. COM. REP. NO.  2106

Honolulu, Hawaii

                , 2007

RE:   S.C.R. No. 115

      S.D. 1

      H.D. 1

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.C.R. No. 115, S.D. 1, entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE DEPARTMENT OF TAXATION TO CODIFY THE LANGUAGE OF THE REFERENCES TO INTERNAL REVENUE CODE PROVISIONS IN SECTION 235-110.7, HAWAII REVISED STATUTES,"

begs leave to report as follows:

The purpose of this concurrent resolution is to request the Department of Taxation (DoTAX) to codify the language of the references to Internal Revenue Code provisions in section 235-110.7, Hawaii Revised Statutes, in one or more sections of the income tax law.

Testimony in support of this concurrent resolution was received from DoTAX and a former Chair of the Tax Review Commission.

Upon further consideration, your Committee has amended this concurrent resolution to request the Department of Taxation to redraft the current capital goods excise tax credit.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 115, S.D. 1, as amended herein, and recommends its adoption in the form attached hereto as S.C.R. No. 115, S.D. 1, H.D. 1.

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

____________________________

MARCUS R. OSHIRO, Chair