STAND. COM. REP. NO. 625

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1681
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Economic Development and Business
Concerns, to which was referred H.B. No. 1681 entitled: 

     "A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this bill is to provide an incentive for the
remodeling of visitor facilities in Waikiki by establishing a
qualified improvement tax credit for capitalized costs of
construction and equipment related to an existing or new facility
located in Waikiki.

     Your Committee received testimony in support of the measure
from the Building Industry Association of Hawaii.  The Department
of Business, Economic Development, and Tourism, the Department of
Taxation, the Hawaii Hotel Association, and the Managing Director
of Hilton Hawaiian Village submitted testimony in support of the
intent of the measure.  Comments were submitted by the Tax
Foundation of Hawaii.

     As affirmed by the record of votes of the members of your
Committee on Economic Development and Business Concerns that is
attached to this report, your Committee is in accord with the
intent and purpose of H.B. No. 1681 and recommends that it pass
Second Reading and be referred to the Committee on Finance.


 
 
 
 
 
                                 STAND. COM. REP. NO. 625
                                 Page 2

 
                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development and Business
                                   Concerns,



                                   ______________________________
                                   ROBERT N. HERKES, Chair