STAND. COM. REP. NO.  654-16

Honolulu, Hawaii

                , 2016

RE:   H.B. No. 1620

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 1620 entitled:

"A BILL FOR AN ACT RELATING TO TAX CREDIT,"

begs leave to report as follows:

The purpose of this measure is to establish a $10 tax credit for individual taxpayers within the State who install plastic water catchments on the properties at which they reside for the purpose of capturing and storing rainwater for household use or fire suppression.

The Department of Taxation and the Tax Foundation of Hawaii offered comments.

     Your Committee has amended this measure by:

     (1)  Changing the amount of the tax credit to 20 percent of the cost of the plastic water catchment system;

     (2)  Requiring the counties to determine and certify the eligibility of a plastic water catchment system for the tax credit; and

     (3)  Changing the effective date to apply to taxable years beginning after December 31, 2017.

     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. 1620, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1620, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

CHRIS LEE, Chair