STAND. COM. REP. NO.  1730

 

Honolulu, Hawaii

                , 2009

 

RE:   S.B. No. 1248

      S.D. 1

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Sir:

 

     Your Committee on Finance, to which was referred S.B. No. 1248, S.D. 1, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO STATE ENTERPRISE ZONES,"

 

begs leave to report as follows:

 

     The purpose of this bill is to improve the State Enterprise Zone (EZ) Program by, among other things:

 

     (1)  Inserting limited liability companies under the definition of "qualified business" and "service business";

 

     (2)  Allowing the receipts, sales, and employees of a business's establishments in all enterprise zones located within a single county to count toward qualification requirements; and

 

     (3)  Extending EZ Program tax incentives for seven additional years for qualified businesses engaged in manufacturing tangible personal property, or producing or processing agricultural products.

 

     The Department of Taxation, Department of Business, Economic Development, and Tourism, and Hawaii Crop Improvement Association opposed this bill.  The Department of Agriculture, Tax Foundation of Hawaii, Hawaiian Electric Company and its subsidiaries Maui Electric Company and Hawaii Electric Light Company, and a concerned individual submitted comments.

 

     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. 1248, S.D. 1, H.D. 1, and recommends that it pass Third Reading.

 

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

 

 

 

 

____________________________

MARCUS R. OSHIRO, Chair