STAND. COM. REP. NO.  880-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 2170

      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. 2170, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to support Hawaii's hotel construction industry by creating an income tax credit, with pre-certification of the credit, for costs incurred in new hotel construction.

Wyndham Vacation Ownership and Hawaii Lodging & Tourism Association testified in support of this measure.  The Department of Taxation, Outrigger Hotels Hawaii, Tax Foundation of Hawaii, and Hawaii Regional Council of Carpenters commented on this measure.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to July 1, 2030, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     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. 2170, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2170, H.D. 2.

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

____________________________

SYLVIA LUKE, Chair