STAND. COM. REP. NO.  1177

 

Honolulu, Hawaii

                , 2011

 

RE:   S.B. No. 769

      S.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Tourism, to which was referred S.B. No. 769, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO ECONOMIC RECOVERY,"

 

begs leave to report as follows:

 

     The purpose of this bill is to create jobs in the construction industry and improve the tourism industry in the State by establishing a tax credit for qualified hotel and resort property construction and renovation costs incurred after December 31, 2010, and before January 1, 2015.

 

     The Hawaii Tourism Authority, The Resort Group, Land Use Research Foundation of Hawaii, and The Pacific Resource Partnership supported this bill.  The Department of Taxation supported the intent of this bill.  The Tax Foundation of Hawaii offered comments.

 

     It appears to your Committee that the proposed tax credit percentage amounts and cost ranges would reduce the cost to the State resulting from lost tax revenues.  Furthermore, as a longer effective period for the tax credit may increase its economic benefits, further discussion in this regard is warranted.

 

     As affirmed by the record of votes of the members of your Committee on Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 769, S.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

 

Respectfully submitted on behalf of the members of the Committee on Tourism,

 

 

 

 

____________________________

TOM BROWER, Chair