CONFERENCE COMMITTEE REP. NO. 98

Honolulu, Hawaii

                 , 2009

RE:    S.B. No. 464

       S.D. 2

       H.D. 2

       C.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam and Sir:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 464, S.D. 2, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to promote the use of, and investment in, renewable energy resources by amending the renewable energy technologies income tax credit to encourage the use of solar and wind energy systems, and permitting a portion of the excess of the credit over payments due to be refunded to the taxpayer under certain circumstances.

     Your Committee on Conference finds that making this tax credit refundable at a reduced level will enable the solar industry in Hawaii to expand its role as an engine of economic stimulus and job creation in the current recessionary environment.  Last year, the solar industry grew five hundred per cent and further room for growth remains.  At present, the solar industry is responsible for approximately two thousand jobs in Hawaii, but the market is artificially capped by inconsistencies in the tax code that make it virtually impossible for most would-be investors to use the credit.  Without access to this tax credit, solar projects in Hawaii are not financially viable.

     Your Committee on Conference has amended this measure by:

     (1)  Changing its effective date from "July 1, 2020" to "July 1, 2009";

     (2)  Making it applicable to taxable years beginning after December 31, 2008; and

     (3)  Making technical, nonsubstantive amendments for the purpose of style.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 464, S.D. 2, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 464, S.D. 2, H.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ HERMINA MORITA, Co-Chair	____________________________ MIKE GABBARD, Chair
____________________________ MARCUS R. OSHIRO, Co-Chair	____________________________ DONNA MERCADO KIM, Co-Chair