CONFERENCE COMMITTEE REP. NO.155-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 2383

S.D. 2

H.D. 2

C.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2383, S.D. 2, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION TO STIMULATE THE ECONOMY,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to stimulate the economy by providing tax incentives related to construction, including:

(1) Establishing a nonrefundable qualified project construction tax credit for qualified project construction costs incurred after December 31, 2002; and

(2) Expanding the hotel construction and remodeling tax credit to include property on which commercial or recreational use is permitted, and off-site improvements to serve destination resort areas.

Your Committee finds that this measure would enhance the appearance of resort and tourist properties to attract tourists, thereby helping to bolster the economy.

Your Committee has amended this measure by providing that the construction tax credit claimed shall be four per cent of the costs incurred in each taxable year during the four-consecutive-year period.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2383, S.D. 2, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2383, S.D. 2, H.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

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LEI AHU ISA, Co-Chair

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ROD TAM, Chair

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DWIGHT Y. TAKAMINE, Co-Chair

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BRIAN T. TANIGUCHI, Co-Chair