STAND. COM. REP. NO.  345

 

Honolulu, Hawaii

                , 2007

 

RE:   H.B. No. 1854

      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. 1854 entitled:

 

"A BILL FOR AN ACT RELATING TO NEW MARKETS TAX CREDIT,"

 

begs leave to report as follows:

 

     The purpose of this measure is to provide new markets tax credits to encourage investments in business and economic development in low-income communities.

 

     Your Committee received favorable testimony from a local practitioner.  The Department of Taxation offered comments, while the Department of Business, Economic Development, and Tourism submitted comments and deferred their position on the measure to the Department of Taxation.

 

     Your Committee finds that the new markets tax credit proposed in this bill mirrors the federal tax credit which attracts capital investment in low-income areas to finance community development projects, stimulate the economy, and to create new jobs.

 

     Your Committee has amended the measure by changing the effective date to July 1, 2034 to encourage further discussion.

 

     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. 1854, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1854, 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