HOUSE OF REPRESENTATIVES

H.C.R. NO.

206

TWENTY-THIRD LEGISLATURE, 2006

 

STATE OF HAWAII

 
   


HOUSE CONCURRENT

RESOLUTION

 

Requesting the department of taxation to determine the economic effectiveness of recent legislation aimed at providing incentives for and credits to the high technology industry.

 

 

WHEREAS, Hawaii's high technology industry continues to grow, and Hawaii-based companies are venturing into and succeeding in several areas of high technology including telecommunications, electronic commerce, networking infrastructure and hardware, software development, and biotechnology; and

WHEREAS, the reach of high technology goes beyond its own industry as it improves the efficiency and effectiveness of other industries in Hawaii as well; and

WHEREAS, although there is progress in Hawaii's high technology industry, focus and cohesiveness in the State's efforts to promote Hawaii's high technology industry is essential to ensure long-lasting success; and

WHEREAS, industry, government, and educational leaders have come together in the past to discuss ideas and plans to further develop Hawaii's high technology industry; and

WHEREAS, the Legislature has passed numerous bills and resolutions over the last several years to assist with the development of the high technology industry; and

WHEREAS, examples of such legislation include:

(1) Act 195, Session Laws of Hawaii 2001, which authorized $10,000,000 in special purpose revenue bonds to assist Science and Technology International;

(2) Act 221, Session Laws of Hawaii 2001, which increased incentives for qualified high technology businesses by, among other things, creating a technology infrastructure renovation income tax credit and exempting various aspects of the high technology business sector from general excise taxes;

(3) Act 177, Session Laws of Hawaii 2002, which supported the operations of the Maui Research and Technology Center and Manoa Innovation Center through various appropriations;

(4) Act 41, Session Laws of Hawaii 2004, which provided funds for infrastructure to expand the High Technology Development Corporation's incubation services;

(5) Act 129, Session Laws of Hawaii 2004, which authorized $30,000,000 in special purpose revenue bonds to assist Electricore, Inc.;

(6) Act 215, Session Laws of Hawaii 2004, which established a source of venture capital and business incentives to increase Hawaii's economic diversity and provide new business opportunities by, among other things, extending the High Technology Business Investment Tax Credit for an additional five years and creating the State Private Investment Fund;

(7) Act 173, Session Laws of Hawaii 2005, which established the High Technology Innovation Corporation, a nonprofit corporation attached to the Department of Business, Economic Development, and Tourism and created to manage and oversee the High Technology Development Corporation, to assist in attracting high technology development opportunities to the state; and

(8) Act 80, Session Laws of Hawaii 2005, which authorized the issuance of special purpose revenue bonds to assist Hoku Scientific;

and

WHEREAS, it is uncertain as to what effect these laws have had on the promotion and development of the high technology industry in Hawaii; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2006, the Senate concurring, that the Department of Taxation (DOTAX), in conjunction with the Department of Business, Economic Development, and Tourism (DBEDT), is requested to review recent legislation aimed at assisting the high technology industry and determine whether this legislation is achieving its intended purposes; and

BE IT FURTHER RESOLVED that in its review, DOTAX and DBEDT provide information and names of businesses receiving these benefits and the extent to which these benefits aided in the development of these businesses; and

BE IT FURTHER RESOLVED that DOTAX is requested to submit a report, including any proposed legislation, to the Legislature no later than 20 days prior to the convening of the Regular Session of 2007; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Directors of Taxation and Business, Economic Development, and Tourism.

 

 

 

OFFERED BY:

_____________________________

Report Title:

Requesting the Department of Taxation to determine the economic effectiveness of recent legislation aimed at providing incentives for and credits to the high technology industry.