STAND. COM. REP. NO.  602

 

Honolulu, Hawaii

                , 2009

 

RE:   H.B. No. 898

      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 Economic Revitalization, Business, & Military Affairs, to which was referred H.B. No. 898 entitled:

 

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

 

begs leave to report as follows:

 

     The purpose of this bill is to reduce traffic congestion on Hawaii's roadways by establishing a Telecommuting Income Tax Credit (Tax Credit) applicable to:

 

(1)  Eligible telecommute expenses incurred by employers, allowing telecommuting to occur; and

 

(2)  The cost incurred by employers in conducting a telecommute assessment needed to implement a telecommute program that would qualify for the Tax Credit.

 

     This bill also establishes limits on the amount of the Tax Credit that may be claimed by the employer and on the aggregate amount of Tax Credits approved in a calendar year. 

 

     The Chamber of Commerce of Hawaii supported this bill.  The Department of Taxation opposed this measure.  Tax Foundation of Hawaii submitted comments.

 

     Your Committee finds that telecommuting offers numerous benefits for employers and employees alike, as well as for the environment and the state's infrastructure.  This measure will allow companies facing increasing rents and other costs to downsize their physical presence while retaining employees.  The Honolulu Star-Bulletin recently published an opinion piece recognizing the benefits of telecommuting, and indicated that studies have shown better workforce productivity and improved employee retention and job satisfaction.

 

     To encourage further discussion on this matter, your Committee has amended this measure by changing:

 

     (1)  The amount of the Tax Credit available to employers for eligible telecommute expenses incurred to unspecified amounts;

 

     (2)  The amount of the Tax Credit available to employers for the costs incurred in conducting a telecommute assessment to an unspecified amount;

 

     (3)  The limits on the amount of the Tax Credit that may be claimed by the employer and on the aggregate amount of Tax Credits approved in a calendar year to unspecified amounts; and

 

     (4)  Changing its effective date to July 1, 2112.

 

     Other technical, nonsubstantive amendments were made for style, clarity, and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Economic Revitalization, Business, & Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 898, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 898, H.D. 1, and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committee on Economic Revitalization, Business, & Military Affairs,

 

 

 

 

____________________________

ANGUS L.K. MCKELVEY, Chair