STAND. COM. REP. NO.24
Honolulu, Hawaii
, 2001
RE: S.B. No. 8
S.D. 2
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Third Special Session of 2001
State of Hawaii
Sir:
Your Committee on Finance, to which was referred S.B. No. 8, S.D. 2 entitled:
"A BILL FOR AN ACT RELATING TO INCOME TAX CREDITS,"
begs leave to report as follows:
The purpose of this bill is to help revitalize the State's construction industry by:
(1) Providing a nonrefundable four percent tax credit for residential construction and remodeling costs incurred up to $250,000 per unit;
(2) Requiring that the residential construction and remodeling costs are incurred before July 1, 2002, for the tax credit to apply;
(3) Temporarily increasing the hotel construction and remodeling tax credit to a nonrefundable ten percent credit for costs incurred after the effective date of this measure through June 30, 2003; and
(4) Requiring that if the residential or hotel tax credit exceeds the taxpayer's income tax liability, the excess of credit over liability can be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted.
The Chamber of Commerce of Hawaii, Department of Taxation, and Department of Business, Economic Development, and Tourism testified in support of this measure. The Building Industry Association of Hawaii and the Hawaii Hotel Association supported the intent of this measure. The Hawaii Tourism Authority commented on this measure. One individual opposed this measure.
Your Committee finds that this measure will have a positive impact on the construction industry because the tax credits will promote private spending on construction projects.
As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 8, S.D. 2, and recommends that it pass Second Reading and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ DWIGHT Y. TAKAMINE, Chair |