STAND. COM. REP. NO.  327-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 3008

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committees on Human Services & Housing and Health, to which was referred H.B. No. 3008 entitled:

"A BILL FOR AN ACT RELATING TO QUALIFIED IMPROVEMENT TAX CREDIT,"

beg leave to report as follows:

     The purpose of this bill is to support community health centers by providing a tax credit for capital improvements made to federally qualified health centers.

     The Waianae Coast Comprehensive Health Center and Hawaii Primary Care Association testified in support of this bill.  The Department of Taxation (DOTAX) and Tax Foundation of Hawaii provided comments.

     Your Committees respectfully request the Committee on Finance to examine the issues raised by DOTAX and the Tax Foundation of Hawaii in their written testimony.  DOTAX provided cost estimates of $4,900,000 to $130,000,000 over a ten-year period to implement this measure.

     Your Committees have amended this bill by:

     (1)  Removing an unnecessary provision giving DOTAX rulemaking authority; and

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

     As affirmed by the records of votes of the members of your Committees on Human Services & Housing and Health that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 3008, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 3008, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Human Services & Housing and Health,

____________________________ JOSHUA B. GREEN, M.D., Chair

____________________________ MAILE SHIMABUKURO, Chair