STAND. COM. REP. NO. 439

Honolulu, Hawaii

, 2021

RE: H.B. No. 1273

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Economic Development, to which was referred H.B. No. 1273 entitled:

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

begs leave to report as follows:

The purpose of this measure is to require the Department of Business, Economic Development, and Tourism to make a public disclosure identifying the names of the taxpayers who are receiving certain tax credits and the total amount of tax credits received for specific economic activities.

Your Committee received comments on this measure from the Department of Taxation; Department of Business, Economic Development, and Tourism; and Tax Foundation of Hawaii.

Your Committee finds that public disclosure and access to the tax credits that are being claimed by taxpayers each year will help to further identify how public monies are being consumed and what activities are tax-favored by the State. Consolidated tax data on the amount of certain tax credits claimed will also aid in decision making and further transparency. Such information and details will also help policymakers in determining social tax policies going forward and how best to use a finite amount of public resources, especially during times of economic recession.

Your Committee has amended this measure by changing the effective date to July 1, 2050, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Economic Development that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1273, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1273, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Development,

____________________________

SEAN QUINLAN, Chair