Report Title:

Tax Credit; Private Development of amenities and attractions at the Ko Olina Resort and Marina

 

Description:

Establishes a tax credit for qualified investment at Ko Olina Resort and Marina.

THE SENATE

S.B. NO.

2907

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to taxation.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that further development that was planned by the State and the city and county of Honolulu to grow the west side of Oahu and create the second city of Kapolei and Ko Olina Resort and Marina will bring extensive economic benefits in new construction and development, resulting in thousands of construction and permanent jobs. The legislature believes that Ko Olina can play a pivotal role in regenerating Oahu's tourism economy. The creation of "must see" amenities or attractions and educational facilities at Ko Olina including a world class ocean front aquarium and marine science education center, a Pacific sports, health, and training center, a golf academy, a travel industry management school, and other facilities developed in cooperation with the University of Hawaii, will attract visitors from local, national, and international markets, will reposition Oahu as a multi-resort island, and will compliment Waikiki by creating a board based visitor destination.

The purpose of this Act is to establish a tax credit for the private development of amenities, attractions, and educational facilities at the Ko Olina Resort and Marina.

SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235-    Amenities, attractions, and educational facilities credit; Ko Olina Resort and Marina. (a) There shall be allowed to each taxpayer subject to the taxes imposed by this chapter a tax credit for investment in the development of amenities or attractions for education or promotional purposes at Ko Olina resort and marina. The tax credit shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter or at the election of the taxpayer from the tax liability imposed by chapter 237, 237D, 238, 239, 241, or 431.

The director of taxation in administering the tax credit for the taxes imposed by chapter 237, 237D, 238, 239, 241, or 431 in lieu of the tax credit may implement the tax credit by prescribing tax forms and instructions that require tax reporting and payment by deduction, allocation, or any other method to determine the tax credit allowed under this section.

The tax credit shall be twenty per cent of the investment made in a taxable year and twenty per cent of the investment for the each of the four consecutive taxable years after the investment is made.

(b) If the tax credit under this section exceeds the taxpayer's income tax liability or the tax liability under chapter 237, 237D, 238, 239, 241, or 431 for any year for which the credit is taken, the excess of the tax credit over liability may be used as a credit against the taxpayer's tax liability for the taxes set forth in this section in subsequent years until exhausted.

Every claim, including amended claims, for a tax credit under this section shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

(c) The tax credit allowed under this section may be transferred from any person making an investment to any person that is subject to taxes under this chapter or chapter 237, 237D, 238, 239, 241, or 431.

(d) As used in this section:

"Investment" means costs incurred after June 30, 2002, at Ko Olina Resort and Marina, being the 642 acres reclassified to Urban District by Decision and Order entered on September 12, 1985, in Docket A83-562, by the land use commission, for the development of physical amenities, attractions, facilities for education purposes, and related facilities and infrastructure, including but not limited to a world-class aquarium and marine science center, a Pacific sports, health, and training center, a golf academy, a travel industry management school, or other educational facilities that could be developed in cooperation with the University of Hawaii.

(e) This section shall apply to investments made after June 30, 2002, and shall not apply to investments made after December 31, 2007; provided that a taxpayer may continue to claim the credits provided in this section if the investment is made before January 1, 2008."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2001.

 

INTRODUCED BY:

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