STAND. COM. REP. NO.  394-10

 

Honolulu, Hawaii

                , 2010

 

RE:   H.B. No. 2558

      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 Committees on Economic Revitalization, Business, & Military Affairs and Labor & Public Employment, to which was referred H.B. No. 2558 entitled:

 

"A BILL FOR AN ACT RELATING TO JOB CREATION,"

 

beg leave to report as follows:

 

     The purpose of this bill is to provide businesses with an incentive to create jobs and employ Hawaii residents by establishing a Job Creation Tax Credit equal to the amount of each new permanent full-time employee's wages withheld for state taxes with a single withholding allowance.

 

     The Office of the Governor, Department of Taxation, Department of Business, Economic Development, and Tourism, and Hawaii Building and Construction Trades Council, AFL-CIO, supported this bill.  The Hawaii Government Employees' Association opposed the intent of this bill.  Tax Foundation of Hawaii commented.

 

     Your Committees respectfully request the Committee on Finance, to which this measure is next referred, to examine how this measure might mesh with the overall financial plan for the State.

 

     To encourage further discussion of this measure, your Committees have amended this bill by changing the effective date to July 1, 2112.

 

     As affirmed by the records of votes of the members of your Committees on Economic Revitalization, Business, & Military Affairs and Labor & Public Employment that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2558, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2558, H.D. 1, and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committees on Economic Revitalization, Business, & Military Affairs and Labor & Public Employment,

 

 

____________________________ KARL RHOADS, Chair		____________________________ ANGUS L.K. MCKELVEY, Chair