STAND. COM. REP. NO.  684-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 1870

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1870 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to establish a nonrefundable income tax credit for taxpayers who purchase residential backup generators.

The Department of Taxation and the Tax Foundation of Hawaii submitted comments on the measure.

     Your Committee finds that this measure will benefit taxpayers by mitigating the cost of purchasing a generator to provide electricity for their homes during an emergency.

     Your Committee has amended this measure by:

     (1)  Specifying that the tax credit:

          (A)  Can only be claimed once per taxpayer; and

          (B)  Shall not include:

              (i)  The costs of installation or prefatory work required for installation of a residential backup generator; or

              (ii) Any costs for which another credit is claimed; and

     (2)  Changing the effective date to July 1, 2030, to facilitate further discussion on the measure.

     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 H.B. No. 1870, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1870, H.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

SYLVIA LUKE, Chair