STAND. COM. REP. NO. 614
Honolulu, Hawaii
RE: S.B. No. 970
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committees on Transportation and Culture and the Arts and Energy and Intergovernmental Affairs, to which was referred S.B. No. 970 entitled:
"A BILL FOR AN ACT RELATING TO TAXATION,"
beg leave to report as follows:
The purpose and intent of this measure is to:
(1) Authorize
a tax credit for businesses that pay the public transportation costs of
employees for:
(A) Counties having populations of 700,000
or more; and
(B) Taxable years beginning after December
31, 2024, but not beginning after December 31, 2029; and
(2) Require
reports to the Legislature.
Your Committees received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.
Your
Committees find that by
incentivizing businesses to subsidize public transportation costs, this measure
will encourage the use of public transportation, therefore reducing traffic
congestion, greenhouse gas emissions, and costs of commuting.
Your
Committees note the comments of the Department of Taxation regarding the
percent of expenditures and the potentiality for waste. Your Committees find that this issue raises
concerns that merit further consideration and respectfully requests that
subsequent Committees to which this measure is referred examine the issues and
concerns raised by the testimony.
Accordingly, your Committees have
amended this measure by:
(1) Inserting language to ensure that eligible employers for the tax credit includes those who purchase fares or passes for employees for bicycle sharing;
(2) Inserting an effective date of July 1, 2050, to
encourage further discussion; and
(3) Making
technical, nonsubstantive amendments for the purposes of clarity and
consistency.
As affirmed by the records of votes of the members of your Committees on Transportation and Culture and the Arts and Energy and Intergovernmental Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 970, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 970, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committees on Transportation and Culture and the Arts and Energy and Intergovernmental Affairs,
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________________________________ GLENN WAKAI, Chair |
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________________________________ CHRIS LEE, Chair |