Bill Text: HI HB2381 | 2010 | Regular Session | Amended
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
STAND. COM. REP. NO. 2738
Honolulu, Hawaii
RE: H.B. No. 2381
H.D. 2
S.D. 1
Honorable Colleen Hanabusa
President of the Senate
Twenty-Fifth State Legislature
Regular Session of 2010
State of Hawaii
Madam:
Your Committee on Education and Housing, to which was referred H.B. No. 2381, H.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO TAXATION,"
begs leave to report as follows:
The purpose of this measure is to provide a temporary tax credit for residential construction and remodeling projects.
Testimony in support of this measure was submitted by nine private organizations and one individual. Testimony in support of the intent of this measure was submitted by the Governor's office and one state agency. Comments were submitted by one private organization. Written testimony presented to the Committee may be reviewed on the Legislature's website.
Your Committee finds that this measure would provide a much-needed boost to the State's construction industry, creating ripple effects to stimulate the state economy while encouraging residents to undertake construction or renovations to improve their homes.
Your Committee has received proposed amendments to this measure that would provide tax credits for hotel construction and renovations rather than for residential construction and renovations. Proponents of the proposed amendments claim that such a tax credit would stimulate the economy more than a residential construction and renovation tax credit. Testimony submitted to your Committee indicates that a hotel construction and renovation tax credit would create up to 23,000 jobs and generate $74,000,000 in additional tax revenue between 2010 and 2012. Your Committee has taken these recommendations into consideration and finds that additional information on the impact of various tax credit schemes on jobs and the state budget would be beneficial.
Accordingly, your Committee has amended this measure by:
(1) Requiring the Department of Taxation to submit a report to the Legislature that compares the impact on jobs and the state budget of four separate tax credits for:
(A) New construction to residential apartment units and houses;
(B) Renovations to residential apartment units and houses;
(C) New construction to hotels and resorts; and
(D) Renovations to hotels and resorts; and
(2) Adding a sunset date of June 30, 2013, for the residential construction and renovation tax credit to prompt a quicker initiation of construction or renovation projects; and
(3) Adding language to clarify that the residential construction and renovation tax credit under this measure is temporary.
As affirmed by the record of votes of the members of your Committee on Education and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2381, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2381, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Education and Housing,
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____________________________ NORMAN SAKAMOTO, Chair |
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