STAND. COM. REP. NO.  51

 

Honolulu, Hawaii

                , 2009

 

RE:   H.B. No. 699

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Sir:

 

     Your Committee on Health, to which was referred H.B. No. 699 entitled:

 

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

 

begs leave to report as follows:

 

     The purpose of this bill is to encourage and support the growth and advancement of medical technology research in Hawaii by providing a Medical Technology Research Tax Credit (Tax Credit) for qualified individuals and corporations that conduct research to benefit children and the elderly with respect to acute health problems, health care in rural areas of the state, and disease prevention.

 

     The Hawaii Medical Service Association supported this bill.  The Department of Taxation opposed this measure.  The Tax Foundation of Hawaii submitted comments.

 

     Your Committee has amended this bill by:

 

(1)  Setting the Tax Credit at ten percent of the costs related to conducting medical technology research;

 

(2)  Providing that no refund or payment be made through the Tax Credit for amounts less than $25,000;

 

(3)  Ensuring that no taxpayer will receive more than one available credit for the same qualified costs claimed under the Tax Credit;

 

(4)  Extending the time period the Tax Credit will be available to December 31, 2013; and

 

(5)  Making technical, nonsubstantive changes for clarity, consistency, and style.

 

     As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 699, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 699, H.D. 1, and be referred to the Committee on Economic Revitalization, Business, & Military Affairs.

 

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

 

 

 

 

____________________________

RYAN I. YAMANE, Chair