STAND. COM. REP. NO. 534-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 1784

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Higher Education & Technology, to which was referred H.B. No. 1784 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to temporarily reinstate the Technology Infrastructure Renovation Tax Credit.

Your Committee received testimony in support of this measure from Charter Communications; Servpac; and Hawaiian Electric. Your Committee received comments on this measure from the Department of the Attorney General; Department of Taxation; Tax Foundation of Hawaii; and Hawaiian Telcom.

Your Committee finds that this measure will provide tax incentives to encourage the development of high technology businesses in the State.

Your Committee has amended this measure by:

(1) Clarifying that the Technology Infrastructure Renovation Tax Credit shall only be available for taxable years beginning after December 31, 2023, and not available for taxable years beginning after December 31, 2026;

(2) Clarifying the definition of "data server";

(3) Changing the effective date to July 1, 3000, to encourage further discussion; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Higher Education & Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1784, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1784, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Higher Education & Technology,

____________________________

AMY A. PERRUSO, Chair