STAND. COM. REP. NO. 503
Honolulu, Hawaii
, 2011
RE: H.B. No. 1307
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Sixth State Legislature
Regular Session of 2011
State of Hawaii
Sir:
Your Committee on Economic Revitalization & Business, to which was referred H.B. No. 1307 entitled:
"A BILL FOR AN ACT RELATING TO TAXATION,"
begs leave to report as follows:
The purpose of this bill is to stimulate construction activity in Hawaii by establishing a temporary residential construction and remodeling tax credit.
Building Industry Association of Hawaii, The Pacific Resource Partnership, Subcontractors Association of Hawaii, Land Use Research Foundation of Hawaii, Hawaii Association of REALTORS, and General Contractors Association of Hawaii supported this bill. The Department of Taxation supported the intent of this measure. Tax Foundation of Hawaii submitted comments.
Your Committee respectfully requests your Committee on Finance to work with the Department of Taxation to determine this measure's impact, both positive and negative, on state revenues.
Your Committee has amended this measure by:
(1) Specifying that the tax credit shall be limited to four percent of the residential construction or remodeling costs paid by the taxpayer during the taxable year for which the credit is claimed;
(2) Clarifying the definition of "construction or remodeling cost" by specifying the use of a licensed contractor to perform the activities for which a tax credit may be claimed;
(3) Changing its effective date to July 1, 2112, to encourage further discussion; and
(4) Making technical, nonsubstantive amendments for style, clarity, and consistency.
As affirmed by the record of votes of the members of your Committee on Economic Revitalization & Business that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1307, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1307, 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,
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____________________________ ANGUS L.K. MCKELVEY, Chair |
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