STAND. COM. REP. NO.454

Honolulu, Hawaii

, 2003

RE: S.B. No. 868

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Economic Development, to which was referred S.B. No. 868 entitled:

"A BILL FOR AN ACT RELATING TO RESIDENTIAL CONSTRUCTION AND RENOVATION TAX CREDIT,"

begs leave to report as follows:

The purpose of this measure is to authorize a two-year extension of the residential construction and remodeling income tax credit.

Testimony in support of this measure was received from the General Contractors Association of Hawaii, Hawaii Association of Realtors, Armstrong Builders, Ltd., and Land Use Research Foundation of Hawaii. The Department of Taxation submitted comments on the measure.

This measure proposes to extend for an additional two years the nonrefundable four per cent residential construction and remodeling tax credit which currently is applicable to costs incurred before July 1, 2003. Your Committee finds that much of Hawaii's housing stock is of advanced age and the continuation of the tax credit will make it more financially feasible for homeowners to undertake necessary remodeling and rebuilding. This measure will also help to stabilize the construction industry at a time of grave international unrest.

As affirmed by the record of votes of the members of your Committee on Economic Development that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 868 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Economic Development,

____________________________

CAROL FUKUNAGA, Chair