STAND. COM. REP. NO. 155

Honolulu, Hawaii

, 2023

RE: H.B. No. 753

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Housing, to which was referred H.B. No. 753 entitled:

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

begs leave to report as follows:

The purpose of this measure is to establish a nonrefundable income tax credit for expenses paid to retrofit a residence with wind resistive devices.

Your Committee received testimony in support of this measure from one individual. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs, Department of Taxation, Hawai‘i Emergency Management Agency, and Tax Foundation of Hawaii.

Your Committee finds that Hawaii is susceptible to property damage resulting from hurricanes, tropical storms, and strong winds. Your Committee further finds that one of the best mitigation strategies for reducing potential damage is the broad statewide use of wind resistive devices on personal residences. However, the costs associated with inspection, repair, and reinforcement of residences that would make homes more hurricane resistant may discourage homeowners from making this kind of investment. Your Committee believes it is in the interests of public health, safety, and welfare to establish a tax credit for the installation of wind resistive devices on residential homes.

Your Committee notes that this measure currently does contain definitions for the terms "wind resistance retrofit project" and "wind resistant standards" that may help in the administration of the tax credit; however, your Committee expects for these terms to be clarified as this measure proceeds through the legislative process.

Your Committee has amended this measure by:

(1) Specifying that the tax credit shall sunset after two years;

(2) Changing the effective date to June 30, 3000, to encourage further discussion; and

(3) 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 Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 753, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 753, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

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

____________________________

TROY N. HASHIMOTO, Chair