STAND. COM. REP. NO.  912

Honolulu, Hawaii

                , 2017

RE:   H.B. No. 1324

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1324, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO A TAX CREDIT FOR INTERISLAND TRANSPORTATION OF AGRICULTURAL PRODUCTS GROWN OR PROCESSED IN STATE ENTERPRISE ZONES,"

begs leave to report as follows:

The purpose of this measure is to amend the State Business Tax Credit to make it additionally available for a percentage of the actual transportation costs paid for the interisland transportation of agricultural products produced and processed in a state enterprise zone.

The Maui County Farm Bureau, Hawaii Farm Bureau, Hawaii Floriculture and Nursery Association, Hawaii Cattlemen's Council, Land Use Research Foundation of Hawaii, Hawaii Crop Improvement Association, Hawaii Farmers & Ranchers United, and two concerned individuals testified in support of this measure.  The Department of Business, Economic Development and Tourism; Department of Agriculture; Department of Taxation; and Tax Foundation of Hawaii commented 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. 1324, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

SYLVIA LUKE, Chair