STAND. COM. REP. NO.  1444

 

Honolulu, Hawaii

                , 2025

 

RE:   S.B. No. 338

      S.D. 2

      H.D. 1

 

 

 

 

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

 

Madame:

 

     Your Committee on Economic Development & Technology, to which was referred S.B. No. 338, S.D. 2, 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 and expand the definition of "technology-enabled infrastructure" to include data servers.

 

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

 

     Your Committee finds that modernizing technology infrastructure, particularly data servers, is crucial to ensuring resilience against cyber threats and weather-related disruptions.  Recent outages affecting state agencies and Hawaii businesses highlight the need for investment in reliable data storage and management systems.  This measure encourages upgrades to technology infrastructure that will enhance data security and operational stability.

 

     Your Committee has amended this measure by:

 

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

 

     (2)  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 Economic Development & Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 338, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 338, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

 

 

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

 

 

 

 

____________________________

GREGGOR ILAGAN, Chair