STAND. COM. REP. NO.  480-12

Honolulu, Hawaii

                , 2012

RE:   H.B. No. 2326

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 2326 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to amend the energy conservation income tax credit to provide that the basis of eligible depreciable property for state income tax purposes shall be reduced by the amount of the tax credit claimed.

Hawaii Solar Energy Association, Hawaii Association of REALTORS, and Hawaii Renewable Energy Alliance testified in opposition to this measure.  The Department of Taxation and Tax Foundation of Hawaii provided comments on this measure.

     Your Committee notes that the fiscal tax issues that may arise under sections 4, 5, and 6 of this measure are outside of the scope of your Committee's subject matter jurisdiction and recommends that in reviewing these sections, your Committee on Finance consider the testimony from the Department of Taxation.

     As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2326 and recommends that it pass Second Reading and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

DENNY COFFMAN, Chair