STAND. COM. REP. NO. 2797

Honolulu, Hawaii

RE: S.B. No. 2488

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2488 entitled:

"A BILL FOR AN ACT RELATING TO INCOME TAX CREDITS,"

begs leave to report as follows:

The purpose of this measure is to provide a tax credit of $1,500 for the purchase of a new or used hybrid motor vehicle.

A hybrid motor vehicle is a motor vehicle with a hybrid propulsion system that uses a combination of electricity and a traditional fuel, such as gasoline.

Your Committee finds that the rising cost of gasoline has made alternative fueled motor vehicles more attractive to the consuming public, not only for the cost savings from using less gasoline, but also because it helps the environment by reducing fossil fuel consumption in the State.

This bill, which applies to taxable years beginning after 2005, provides a strong tax incentive to encourage consumers to save money and help the environment by purchasing a hybrid motor vehicle.

Your Committee has amended this measure by:

(1) Changing the tax credit to an unspecified amount for the purpose of furthering discussion; and

(2) Making technical nonsubstantive amendments for the purposes of clarity and style.

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. 2488, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2488, S.D. 1.

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

____________________________

BRIAN T. TANIGUCHI, Chair