Bill Text: HI HB2381 | 2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: GET Exemption; HHFDC Housing Development; Rental Income; Tax Credit; Residential Construction and Remodeling

Spectrum: Partisan Bill (Democrat 21-0)

Status: (Enrolled - Dead) 2010-04-12 - (S) Received notice of appointment of House conferees (Hse. Com. No. 558). [HB2381 Detail]

Download: Hawaii-2010-HB2381-Amended.html

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STAND. COM. REP. NO.  103-10

 

Honolulu, Hawaii

                , 2010

 

RE:   H.B. No. 2381

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Sir:

 

     Your Committee on Economic Revitalization, Business, & Military Affairs, to which was referred H.B. No. 2381 entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose of this bill is to stimulate Hawaii's economy by establishing a tax credit for residential construction and remodeling.

 

     The Hawaii Association of Realtors, Building Industry Association of Hawaii, and Subcontractors Association of Hawaii testified in support of this bill.  The Department of Taxation (DoTAX) and Tax Foundation of Hawaii submitted comments.

 

     Your Committee notes that the absence of DoTAX from the hearing of this measure made it difficult for members to evaluate and respond to the department's written testimony.  Your Committee hopes that in the future, the department will see fit to send a representative who is well-prepared to advise the Committee on this, and other measures that impact the State's revenue base.

 

     While recognizing that this measure does raise some degree of fiscal concerns, your Committee also notes that the tax credit is a recommendation of the Construction Industry Tax Force, which was  established by Senate Concurrent Resolution No. 132, S.D. 1, 2009,  to develop and propose state actions to preserve and create new construction jobs.  Given the 52 percent of construction workers on the bench during this economic downturn, your Committee believes that further, informed consideration of the costs and benefits of this measure is warranted.

 

     To encourage further discussion of this measure, your Committee has changed its effective date to July 1, 2112.

 

     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. 2381, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2381, 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