STAND. COM. REP. NO.  608-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 2060

      H.D. 2

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. 2060, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to become more self-sufficient and achieve greater energy security in the State by encouraging the production of renewable fuels by:

(1)  Establishing a renewable fuels production tax credit for qualified taxpayers who are certified by the Department of Business, Economic Development, and Tourism.  The tax credit may be claimed for no more than five years; and

     (2)  Repealing the ethanol facility tax credit.

Zero Waste Campaign Maui; Pacific Biodiesel Technologies; Upcountry Mobile Mechanic Service, LLC; Hawaii Renewable Energy Alliance; Renewable Energy Action Coalition of Hawaii; Blue Planet Foundation; Maui Recycling Services, Inc.; and several individuals provided testimony in support of this measure.  The Department of Business, Economic Development, and Tourism; Department of Taxation; Tax Foundation of Hawaii; and Ulupono Initiative provided comments on this 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. 2060, H.D. 2, and recommends that it pass Third Reading.

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

____________________________

SYLVIA LUKE, Chair