STAND. COM. REP. 1063

Honolulu, Hawaii

, 2003

RE: S.B. No. 425

S.D. 2

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Economic Development and Business Concerns, to which was referred S.B. No. 425, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO HIGH TECHNOLOGY,"

begs leave to report as follows:

The purpose of this bill is to enable Hawaii's high technology companies to enter into new and emerging technology industries by:

(1) Establishing the Hawaii Instrument Pool; and

(2) Creating the Hawaii Instrument Pool Donation Tax Credit (Tax Credit).

This bill would enable qualifying taxpayers to be eligible for an income tax credit of up to 50 percent of the basis of the qualifying instrument at the time of the first loan from the Hawaii Instrument Pool. The Tax Credit must be claimed in the taxable year in which the qualifying instrument is returned to the pool after its first loan, as long as the credit does not exceed $50,000 or 25 percent of the taxpayer's net income tax liability, whichever is less, in any one taxable year.

The Hawaii Technology Trade Association, Hoana Medical, Maui Scientific Research Center, Oceanit, Pacific Marine/Navatek supported this bill.

The High Technology Development Corporation and Hoku Scientific, Inc., supported the intent of this bill.

The Department of Taxation, Tax Foundation of Hawaii, and Maui Light, Lasers and Electronic Design submitted comments.

Your Committee has amended this bill by:

(1) Changing the amount of the tax credit from 50 to 10 percent;

(2) Changing the maximum credit from $50,000 to $10,000; and

(3) Changing the effective date to July 1, 2020, to facilitate further discussion.

As affirmed by the record of votes of the members of your Committee on Economic Development and Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 425, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 425, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Business Concerns,

 

____________________________

BRIAN SCHATZ, Chair