STAND. COM. REP. 517

Honolulu, Hawaii

, 2003

RE: H.B. No. 1419

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Health, to which was referred H.B. No. 1419 entitled:

"A BILL FOR AN ACT RELATING TO RESEARCH,"

begs leave to report as follows:

The purpose of this bill is to:

(1) Provide an income tax credit on qualified medical research activities of up to 20 percent of the costs related to the qualified medical research;

(2) Require that refunds owed to taxpayers who claim an income tax credit on qualified general research activities shall be applied as a credit against the taxpayers' income tax liability in subsequent years;

(3) Limit to $500,000 the amount a shareholder in a qualified high technology business may sell of the business' total net operating loss; and

(4) Require the Department of Taxation to submit an annual report on the medical research tax credit.

Science and Technology International submitted testimony in support of this bill.

 

Your Committee finds that promoting research, and medical research in particular, will help to improve and diversify Hawaii's economy. Encouraging businesses devoted to medical research to operate in Hawaii will also increase the number of high-quality jobs in the State, and improve the State's standing as an incubator of innovation in the medical industry.

As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1419 and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committee on Health,

 

____________________________

DENNIS A. ARAKAKI, Chair