STAND. COM. REP. NO.  616-12

Honolulu, Hawaii

                , 2012

RE:   H.B. No. 2240

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committees on Economic Revitalization & Business and International Affairs, to which was referred H.B. No. 2240 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

beg leave to report as follows:

The purpose of this measure is to establish a tax credit for certain businesses that relocate their headquarters to Hawaii.

The Department of Taxation opposed this measure.  Tax Foundation of Hawaii provided comments on this measure.

     Your Committees have amended this measure by:

     (1)  Eliminating the tax credit provided;

     (2)  Providing tax exemptions to certain eligible businesses that relocate their corporate headquarters to the State from outside the State; and

     (3)  Specifying, among other things, that qualifying businesses must have had worldwide revenues of at least $100,000,000 in the year preceding the business's application for an exemption.

     As affirmed by the records of votes of the members of your Committees on Economic Revitalization & Business and International Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2240, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2240, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Economic Revitalization & Business and International Affairs,

____________________________ KAREN L. AWANA, Chair

____________________________ ANGUS L.K. McKELVEY, Chair