HB2722

Report Title:

Tax credit; Ko Olina resort area investment

Description:

Establishes a tax credit for qualified investment in the Ko Olina resort area.

HOUSE OF REPRESENTATIVES	H.B. NO.	2722
TWENTY-FIRST LEGISLATURE, 2002
STATE OF HAWAII

A BILL FOR AN ACT

 

RELATING TO TAXATION.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

SECTION 1. The legislature finds that further development as was planned by the State and city and county of Honolulu to grow the west side of Oahu and create the second City of Kapolei and the Ko Olina resort area would bring extensive economic benefits in new construction and development, and thousands of construction and permanent jobs. The legislature believes that the Ko Olina resort area can play a pivotal role in regenerating Oahu’s tourism economy. The creation of "must see" amenities or attractions and educational facilities in the Ko Olina resort area including a world class oceanfront aquarium and marine science center, a Pacific sports, health and training center, a travel industry management school and other facilities developed in cooperation with the University of Hawaii, will attract visitors from local, national, and international markets, will reposition Oahu as a multi-resort island, and will complement Waikiki to create a broad-based visitor destination.

The purpose of this Act is to establish a tax credit for the private development of amenities, attractions, and educational facilities in the Ko Olina resort area.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"CHAPTER

KO OLINA RESORT AREA INVESTMENT TAX CREDIT

§ - Amenities, attractions, and resort area investment tax credit. (a) There shall be allowed to each eligible taxpayer subject to the taxes imposed by chapters 235, 237, 237D, 238, 239, 241, or 431 a tax credit for investment in the development of amenities or attractions for education and promotional purposes in the Ko Olina resort area. The tax credit shall be deductible from the taxpayer’s net income tax liability, if any, imposed by chapter 235 or, at the election of the taxpayer, from the tax liability imposed by chapter 237, 237D, 238, 239, 241 or 431; provided the entire amount of the credit shall be deductible from the tax liability imposed by only one chapter.

(b) The tax credit shall be twenty per cent of the investment made in the taxable year and twenty per cent of the investment for each of the four consecutive tax years after the investment is made.

(c) If the tax credit under this section exceeds the taxpayer’s tax liability for any year for which the credit is taken, the excess of the tax credit over liability may be used as a credit against the taxpayer’s tax liability for the taxes set forth in this section in subsequent years until exhausted; provided the tax credit shall be used against the tax liability imposed by only one chapter.

(d) The tax credit allowed under this section my be transferred from any person making an investment to any other person that is subject to taxes under chapter 235, 237, 237D, 238, 239, 241, or 431.

(e) Every claim, including amended claims, for a tax credit under this section shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

(f) The director of taxation shall prepare any forms that may be necessary to claim or transfer a credit under this section. The director may also require the taxpayer to furnish information to ascertain the validity of the claim for credit made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91.

(g) The tax credit allowed under this chapter shall be available for taxable years beginning after June 30, 2002, and shall not be available for taxable years beginning after December 31, 2007; provided that a taxpayer may continue to claim any credit as provided in subsection (b) if the investment is made before January 1, 2008.

(h) As used in this section:

"Investment" means costs incurred after June 30, 2002, in the Ko Olina resort area, being the six hundred forty-two acres reclassified to urban District by Decision and Order entered on September 12, 1985, in Docket A83-562 by the land use commission, for the development of physical amenities, attractions, and facilities for education or promotional purposes and related facilities and infrastructure, including but not limited to a world-class aquarium and marine science center, a Pacific sports, health, and training center, a golf academy, a travel industry management school or other educational facilities that could be developed in cooperation with the University of Hawaii."

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________