STAND. COM. REP. NO. 254

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 464

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Madam:

 

     Your Committee on Energy and Environment, to which was referred S.B. No. 464 entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose of this measure is to make amendments to the Hawaii Renewable Energy Tax Credit by:

 

     (1)  Making it refundable;

 

     (2)  Removing the restriction on the type of income that it can be used to offset;

 

     (3)  Making it specially allocable; and

 

     (4)  Making it available to Hawaii insurance companies.

 

     Testimony in support of this measure was submitted by eight private organizations.  The Department of Taxation submitted testimony in support of the intent of the measure, with comments.  Copies of written testimony are available for review on the Legislature's website.

 

     Your Committee finds that, as currently drafted, the Hawaii Renewable Energy Tax Credit has very limited appeal as a financial incentive.  This measure expands the class of investors who can use the credit, thereby attracting much more investment capital to renewable energy in Hawaii.

 

     Your Committee has amended this measure by making technical, nonsubstantive stylistic amendments to the proposed section 235‑12.5(h)(2), Hawaii Revised Statutes, to conform that provision with other sections of this measure.

 

     As affirmed by the record of votes of the members of your Committee on Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 464, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 464, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Energy and Environment,

 

 

 

____________________________

MIKE GABBARD, Chair