Bill Text: HI HB205 | 2012 | Regular Session | Introduced


Bill Title: Enterprise Zones; Repeal of Incentives

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-12-01 - Carried over to 2012 Regular Session. [HB205 Detail]

Download: Hawaii-2012-HB205-Introduced.html

HOUSE OF REPRESENTATIVES

H.B. NO.

205

TWENTY-SIXTH LEGISLATURE, 2011

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO enterprise zones.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The purpose of this Act is to repeal certain tax incentives received by businesses for the research, development, sale, or production of genetically-engineered products within state enterprise zones.

     SECTION 2.  Section 209E-2, Hawaii Revised Statutes, is amended by amending the definition of "eligible business activity" to read as follows:

     ""Eligible business activity" means the:

     (1)  Manufacture of tangible personal property, the wholesale sale of tangible personal property as described in section 237-4, or a service business as defined in this section;

     (2)  Production of agricultural products where the business is a producer as defined in section 237-5, or the processing of agricultural products, all or some of which were grown within an enterprise zone; or

    [(3)  Research, development, sale, or production of all types of genetically-engineered medical, agricultural, or maritime biotechnology products; or

     (4)] (3)  Production of electric power from wind energy for sale primarily to a public utility company for resale to the public."

     SECTION 3.  Section 209E-11, Hawaii Revised Statutes, is amended to read as follows:

     "§209E-11  State general excise exemptions.  The department shall certify annually to the department of taxation that any qualified business is exempt from the payment of general excise taxes on the gross proceeds from an eligible business activity as defined in this chapter; provided that agricultural businesses [other than those engaged in the production of genetically-engineered agricultural products] shall not be exempt from the payment of general excise taxes on the gross proceeds of agricultural retail sales.  The gross proceeds received by a contractor licensed under chapter 444 shall be exempt from the general excise tax for construction within an enterprise zone performed for a qualified business within an enterprise zone or a business that has been approved by the department to enroll into the enterprise zone program.  The exemption shall extend for a period not to exceed seven years; provided that for qualified businesses engaged in the manufacturing of tangible personal property or the producing or processing of agricultural products, the exemption shall extend for a period not to exceed ten years; provided further that if a force majeure event occurs, then the period of time shall be tolled until the force majeure event ceases."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2011, and shall apply to tax years beginning after December 31, 2010.

 

INTRODUCED BY:

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Report Title:

Enterprise Zones; Repeal of Incentives

 

Description:

Amends the definition of "eligible business activity" and repeals certain tax incentives received by businesses for the research, development, sale, or production of genetically-engineered products within state enterprise zones.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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