Bill Text: HI HB962 | 2012 | Regular Session | Amended

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Bill Title: Income Tax; Internal Revenue Code; Depreciation

Spectrum: Moderate Partisan Bill (Democrat 8-1)

Status: (Introduced - Dead) 2011-12-01 - Carried over to 2012 Regular Session. [HB962 Detail]

Download: Hawaii-2012-HB962-Amended.html

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STAND. COM. REP. NO.  351

 

Honolulu, Hawaii

                , 2011

 

RE:   H.B. No. 962

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Economic Revitalization & Business, to which was referred H.B. No. 962 entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose of this bill as received by your Committee is to exempt new businesses from the income tax. 

 

     Prior to the hearing, your Committee circulated a proposed draft of this bill that replaced its substance with provisions to conform state income tax law with section 179 of the Internal Revenue Code relating to the expensing of certain depreciable business assets.  More specifically, the proposed draft deletes provisions in the state income tax law that list exceptions to the applicability of section 179.

 

     The Department of Taxation (DOTAX) and the Tax Foundation of Hawaii submitted comments on the proposed draft of this bill.

 

     Your Committee notes the concerns raised by DOTAX regarding the revenue impact of the proposed draft and respectfully requests your Committee on Finance to review this issue as this bill moves forward in the legislative process.

 

     Your Committee has amended this measure as received by your Committee by:

 

     (1)  Deleting its contents and adopting the provisions in the proposed draft circulated prior to the public hearing; and

 

     (2)  Inserting an effective date of July 1, 2112, to encourage further discussion.

 

     As affirmed by the record of votes of the members of your Committee on Economic Revitalization & Business that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 962, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 962, 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,

 

 

		____________________________ ANGUS L.K. MCKELVEY, Chair