STAND. COM. REP. NO. 1228

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1307

       H.D. 1

       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 H.B. No. 1307, H.D. 1, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to establish the ohana residential housing income tax credit.

 

The measure establishes the tax credit as a refundable income tax credit that would be equal to the lesser of two per cent of the purchase price of the qualified principal residence located in the State, or $6,000.  The tax credit would only be available to qualified taxpayers who purchase a qualified principal residence on or after April 1, 2011, and before January 1, 2013.

 

     Your Committee received written comments in support of this measure from Myoung Oh, Government Affairs Director, Hawaii Association of REALTORS; Dave Arakawa, Executive Director, Land Use Research Foundation of Hawaii; and Debra M.A. Luning, Director of Governmental Affairs and Community Relations, Gentry Homes, Ltd.

 

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

 

     Your Committee finds that this measure will benefit the local construction industry by providing an incentive for the purchase of newly constructed homes.  Your Committee also finds that the tax incentive proposed by this measure will help to create jobs and stimulate the State's economy.

 

     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 H.B. No. 1307, H.D. 1, 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