STAND. COM. REP. NO. 688

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 769

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, 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 and intent of this measure is to create jobs in the construction industry and improve the tourism industry in the State by establishing a hotel and resort property construction and renovation tax credit.

 

     Your Committee received comments in support of this measure from Mike McCartney, President and Chief Executive Officer, Hawaii Tourism Authority; Land Use Research Foundation of Hawaii; and C. Mike Kido, External Affairs, The Pacific Resource Partnership.

 

     Your Committee received comments on this measure from the Tax Foundation of Hawaii.

 

     Your Committee finds that the measure establishes a tiered, nonrefundable tax credit against a taxpayer's income tax liability for costs incurred on qualified hotel and resort property construction projects in the State.  The percentages and qualifying monetary thresholds and ceilings are unspecified.

 

     Your Committee believes that this measure has the potential to create new jobs in the construction industry and improve the tourism industry if private developers are committed to fully utilizing the tax credit as proposed.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means 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 Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

____________________________

DAVID Y. IGE, Chair