STAND. COM. REP. NO. 1140
Honolulu, Hawaii
RE: H.B. No. 1044
H.D. 1
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Twenty-Ninth State Legislature
Regular Session of 2017
State of Hawaii
Sir:
Your Committees on Transportation and Energy and Economic Development, Tourism, and Technology, to which was referred H.B. No. 1044, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO RENEWABLE FUELS TAX CREDIT,"
beg leave to report as follows:
The purpose and intent of this measure is to replace the Department of Business, Economic Development, and Tourism's requirements related to the certification, administration, and verification of the renewable fuels production tax credit with a process that requires the taxpayer to submit a certified statement to the Department of Business, Economic Development, and Tourism.
Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; and Department of Taxation. Your Committees received testimony in opposition to this measure from one individual. Your Committees received comments on this measure from the Tax Foundation of Hawaii.
Your Committees find that creating a stronger market for renewable fuels is essential for helping the State develop a sustainable clean energy economy. Act 202, Session Laws of Hawaii 2016, established a renewable fuels production tax credit aimed in part at developing a stronger renewable fuels market. Act 202 also required the Department of Business, Economic Development, and Tourism to collect and verify data relating to actual renewable fuels production in the State. However, the Department lacks the necessary expertise and resources to effectively carry out Act 202's mandates. Therefore, this measure replaces the Department's requirements associated with the certification, administration, and verification of the renewable fuels production credit with a survey of the renewable fuels production tax credit which will still allow the Department of Business, Economic Development, and Tourism to assess the effectiveness of the tax credit and report its findings to the Governor and Legislature.
Your Committees, however, acknowledge the testimony of the Department of Business, Economic Development, and Tourism requesting that this measure be amended to better align the Department's existing resources and expertise with this measure's statutory requirements.
Accordingly, your Committees have amended this measure by:
(1) Clarifying that the taxpayer claiming the renewable fuels production tax credit is required to file with the Department of Business, Economic Development, and Tourism an independent, third-party certified statement at the taxpayer's sole expense;
(2) Clarifying the information that a taxpayer claiming the renewable fuels production credit is to provide to the Department of Business, Economic Development, and Tourism;
(3) Clarifying that the $3,000,000 aggregate cap applies to a calendar year;
(4) Clarifying the information that the Department of Business, Economic Development, and Tourism is required to make available for public inspection and dissemination pursuant to chapter 92F, Hawaii Revised Statutes; and
(5) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
As affirmed by the records of votes of the members of your Committees on Transportation and Energy and Economic Development, Tourism, and Technology that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1044, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1044, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committees on Transportation and Energy and Economic Development, Tourism, and Technology,
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________________________________ GLENN WAKAI, Chair |
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________________________________ LORRAINE R. INOUYE, Chair |
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