STAND. COM. REP. NO.  567-12

Honolulu, Hawaii

                , 2012

RE:   H.B. No. 2408

      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 Committee on Economic Revitalization & Business, to which was referred H.B. No. 2408 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to change the sunset date of the temporary suspension of general excise tax exemptions for high technology research and development grants and for shipbuilding and ship repairs, as provided for in Act 105, Session Laws of Hawaii 2011.

The Chamber of Commerce of Hawaii; Ship Repair Association of Hawaii; Marisco, Ltd.; Phoenix International Holdings, Inc.; Pacific Shipyards International; Unitek Contracting Group; and an individual testified in support of this measure.  NSC Technologies testified in opposition to this measure.  The Department of Taxation and the Hawaii Technology Development Corporation commented on this measure.

     Your Committee has amended this measure by changing its effective date to June 30, 2112, to encourage further discussion.

     As affirmed by the record of votes of the members of your Committee on Economic Revitalization & Business that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2408, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2408, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Revitalization & Business,

____________________________

ANGUS L.K. McKELVEY, Chair