STAND. COM. REP. NO.  605

 

Honolulu, Hawaii

                , 2007

 

RE:   H.B. No. 1752

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Sir:

 

     Your Committee on Economic Development & Business Concerns, to which was referred H.B. No. 1752 entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose of this bill is to assess the effectiveness of tax credit incentives for increased economic productivity by providing for:

 

(1)  The disclosure by high technology businesses of information about these tax credits to the Department of Business, Economic Development, and Tourism (DBEDT); and

 

(2)  An analysis by DBEDT of the economic impact and effectiveness of these tax credits.

 

Numerous concerned individuals supported this bill.  DBEDT supported the intent of this bill.  Honolulu Seawater Air Conditioning, LLC, Oceanit, Cellular Bioengineering, Inc., Ocean Engineering & Energy Systems, LLC, ICAM, PacifiCap Group, and a concerned individual opposed this measure.

 

Your Committee has amended this bill by removing its substantive contents and inserting a new chapter, which is the result of discussions between Committee members and those testifying on the bill.  As amended, this bill will create a uniform, standardized system of applications and mandatory yearly progress reports for all recipients of state tax credits worth $10,000 or more annually, which will include information about the organization's business, employees, and jobs created and retained.

 

     As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1752, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1752, H.D. 1, and be referred to the Committee on Finance.

 

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

 

 

 

 

____________________________

KYLE T. YAMASHITA, Chair