STAND. COM. REP. NO. 652

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 736

       S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Madam:

 

     Your Committees on Economic Development, Government Operations and Housing and Technology and the Arts, to which was referred S.B. No. 736 entitled:

 

"A BILL FOR AN ACT RELATING TO ECONOMIC DEVELOPMENT,"

 

beg leave to report as follows:

 

     The purpose and intent of this measure is to stimulate economic growth in Hawaii by re-enacting the income tax credit for qualified research activities for a period of five years and adding reporting requirements.

 

     Your Committees received testimony in support of this measure from Pukoa Scientific; Oceanit Laboratories, Inc.; Navatek, Ltd.; The Chamber of Commerce of Hawaii; and two individuals.  Your Committees received testimony in opposition to this measure from one individual.  Your Committees received comments on this measure from the Department of Taxation; Hawaii Strategic Development Corporation; High technology Development Corporation; and the Tax Foundation of Hawaii.

 

     Your Committees find that the tax credit for qualified research activities sunset on December 31, 2010.  The tax credit is important to the success of local research and high technology companies as it allows these companies to remain competitive with mainland companies.  The tax credit also fosters job growth and the purchase of goods and services in Hawaii.

 

     Your Committees have amended this measure by:

 

     (1)  Inserting an effective date of January 1, 2050, to encourage further discussion; and

 

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

 

     As affirmed by the records of votes of the members of your Committees on Economic Development, Government Operations and Housing and Technology and the Arts that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 736, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 736, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committees on Economic Development, Government Operations and Housing and Technology and the Arts,

 

____________________________

GLENN WAKAI, Chair

 

____________________________

DONOVAN M. DELA CRUZ, Chair