CONFERENCE COMMITTEE REP. NO.139-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 2831

S.D. 1

H.D. 1

C.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2831, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AN EXTENSION OF THE RESIDENTIAL CONSTRUCTION AND REMODELING INCOME TAX CREDIT,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to extend the benefits of the nonrefundable 4% residential construction and remodeling income tax credit to costs incurred to December 31, 2005. Act 10, Third Special Session, applies the credit to costs incurred before July 1, 2002.

Your Committee finds that, although homeowners should be granted tax relief for the construction and remodeling of their homes, in light of the severe budgetary shortfall facing the State of Hawaii, the extension of the time frame of the tax credit should be shortened to July 1, 2003, rather than December 31, 2005.

Your Committee has amended the measure by:

(1) Ending the tax credit time frame on July 1, 2003;

(2) Reverting back to the original language of Act 10, Third Special Session, 2001 allowing the tax credit for expenses incurred after December 31, 2000; and

(3) Providing that the effective date applies to taxable years beginning after December 31, 2001.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2831, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2831, S.D. 1, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________

LEI AHU ISA, Co-Chair

____________________________

BRIAN T. TANIGUCHI, Chair

____________________________

DWIGHT Y. TAKAMINE, Co-Chair