Bill Text: HI SB1164 | 2012 | Regular Session | Amended

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Bill Title: Enterprise Zones; Renewable Energy

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Engrossed - Dead) 2011-12-01 - Carried over to 2012 Regular Session. [SB1164 Detail]

Download: Hawaii-2012-SB1164-Amended.html

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STAND. COM. REP. NO.  1141

 

Honolulu, Hawaii

                , 2011

 

RE:   S.B. No. 1164

      S.D. 2

      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 Committees on Economic Revitalization & Business and Energy & Environmental Protection, to which was referred S.B. No. 1164, S.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO ENTERPRISE ZONES,"

 

beg leave to report as follows:

 

     The purpose of this bill is to support the renewable energy industry in Hawaii by expanding the definition of "eligible business activity" under the State's Enterprise Zone program to include:

 

     (1)  Production of electric power from renewable energy, as defined under the Public Utilities Commission law, for sale primarily to a public utility company for resale to the public; and

 

     (2)  Ownership, control, operation, or management of any seawater air conditioning district cooling project.

 

     Hawaiian Electric Company, Maui Electric Company, Hawaii Electric Light Company, Honolulu Seawater Air Conditioning, LLC, and The Hawaii Building and Construction Trades Council, AFL-CIO, supported this bill.  The Department of Business, Economic Development, and Tourism (DBEDT) supported the intent of this measure.  The Department of Taxation, Sopogy, Inc., and Tax Foundation of Hawaii submitted comments.

 

     It is the understanding of your Committees that interested stakeholders and DBEDT have initiated discussions on concerns raised regarding the kinds of activities that may qualify for the incentives provided by this measure.  Your Committees note that the parties involved have indicated their willingness to continue this dialogue as this bill moves forward to the Committee on Finance. 

 

     Your Committees have amended this measure by:

 

     (1)  Clarifying that the provisions of section 209E-11, Hawaii Revised Statutes (HRS), which establish state general excise tax (GET) exemptions for qualified businesses on the gross proceeds from an eligible business activity, is applicable in spite of the provisions of section 237-13.5 HRS, which relate to assessment of the GET on the sale of electric power to a public utility company for resale to the public;

 

     (2)  Changing its effective date to July 1, 2112, to encourage further discussion; and

 

     (3)  Making technical, nonsubstantive amendments for style, clarity, and consistency.

 

     As affirmed by the records of votes of the members of your Committees on Economic Revitalization & Business and Energy & Environmental Protection that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1164, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1164, S.D. 2, 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 and Energy & Environmental Protection,

 

 

____________________________ DENNY COFFMAN, Acting Chair

____________________________ ANGUS L.K. McKELVEY, Chair