STAND. COM. REP. NO. 3215

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 2170

       H.D. 2

       S.D. 2

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 2170, H.D. 2, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to encourage new hotel construction.

 

     More specifically, this measure establishes a nonrefundable income tax credit for costs incurred in new hotel construction.

 

     Your Committee received written comments in support of this measure from the Hawaii Tourism Authority, Hawaii Lodging and Tourism Association, Maui Hotel and Lodging Association, and Wyndham Vacation Ownership.  The Department of Taxation and the Tax Foundation of Hawaii submitted written comments on the measure.

 

     Your Committee finds that tourism is Hawaii's principal industry and contributes significantly to the state economy.  Your Committee also finds that Hawaii must revitalize its aging hotel and resort infrastructure in order to remain competitive as a viable travel and tourist destination.  Your Committee believes that this measure will provide an incentive for the private sector to invest in new hotel construction.

 

     Your Committee has amended this measure by:

 

     (1)  Authorizing unused tax credits to be carried forward;

 

     (2)  Clarifying that the tax credit may only be claimed for new construction costs, rather than renovation costs;

 

     (3)  Clarifying the certification process for tax credit claims; and

 

     (4)  Making technical nonsubstantive amendments for the purposes of consistency, 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 H.B. No. 2170, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2170, H.D. 2, S.D. 2.

 

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

 

 

 

____________________________

DAVID Y. IGE, Chair