STAND. COM. REP. NO.882

Honolulu, Hawaii

, 2003

RE: S.B. No. 235

S.D. 3

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 235, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO GOVERNMENT,"

begs leave to report as follows:

The purpose of this bill is to establish a tax credit for qualified costs incurred in the development of law enforcement, emergency medical services, and public safety training facilities on state land at Kalaeloa, Oahu.

The tax credit established in the measure, among other things:

(1) Applies to qualified costs incurred during five consecutive taxable years, beginning with the tax year after the enactment of the measure;

(2) Amounts to a maximum credit of $5,000,000 in the aggregate for all qualified taxpayers in any one year; and

(3) Amounts to a maximum credit of $25,000,000 in the aggregate for all qualified taxpayers for all five years.

Your Committee finds that this measure provides tax credits to assist in the development of a Virtual Training Center where emergency response personnel and other law enforcement and medical personnel can train for simulated emergencies in a classroom setting. This training center could train Hawaii support personnel to fulfill their mission to help and protect our residents in a safe and cost effective manner. It also has the potential to serve as a training hub for the Pacific Rim area.

Upon further consideration, your Committee has amended the bill by making amendments that:

(1) Clarify that the tax credit may be earned for qualified costs incurred in taxable years from January 1, 2004 through December 31, 2009;

(2) Change the maximum amount of tax credit for five years and for any one year to an unspecified amount;

(3) Specify that a taxpayer may continue to claim the tax credit for qualified costs incurred before January 1, 2010, subject to maximum amounts specified;

(4) Clarify that taxpayers who claim a tax credit under this measure may not claim a tax credit under chapter 237, 237D, 238, 239, 241, or 431, Hawaii Revised Statutes, for the same qualified costs or for other activity or business at Kalaeloa, Oahu;

(5) Provide that statements filed pursuant to the proposed new section are public documents; and

(6) Made technical amendments for purposes of clarity.

In addition, your Committee has amended the bill by changing the effective date to January 1, 2050 to encourage discussion on this important issue.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 235, S.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 235, S.D. 3.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

BRIAN T. TANIGUCHI, Chair