STAND. COM. REP. NO. 1310

Honolulu, Hawaii

RE:    H.B. No. 1491

       H.D. 2

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 1491, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ETHANOL FACILITY TAX CREDIT,"

begs leave to report as follows:

     The purpose of this measure is to reduce the aggregate annual cap on the ethanol facility tax credit from $12,000,000 to $8,000,000 from July 1, 2011 through December 31, 2012.

     Your Committee received two written comments on this measure.  The written comments may be reviewed on the Legislature's website.

     Your Committee finds that while the ethanol facility tax credit provides an incentive for the construction and development of ethanol facilities in the State, a temporary reduction in the aggregate annual cap of the tax credit may help to ensure fiscal stability during the current economic recession.  Your Committee does not believe that this temporary reduction will curtail ethanol production in the State.

     Your Committee has amended this measure by changing the effective date to July 1, 2090, to facilitate further discussion on the measure.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1491, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1491, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DONNA MERCADO KIM, Chair