HB2646 HSCR144-02

 

STAND. COM. REP. NO.144-02

Honolulu, Hawaii

, 2002

RE: H.B. No. 2646

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committees on Human Services and Housing and Health, to which was referred H.B. No. 2646 entitled:

"A BILL FOR AN ACT RELATING TO QUALIFIED IMPROVEMENT TAX CREDIT,"

beg leave to report as follows:

The purpose of this bill is to provide tax relief to federally qualified health centers by:

(1) Providing an income tax credit for qualified improvement costs, including construction costs and equipment; and

(2) Allowing qualifying health centers to claim any unused credits against general excise tax liability.

Waianae Coast Comprehensive Health Center testified in support of this bill. The Department of Taxation opposed this bill. The Tax Foundation of Hawaii submitted comments.

Your Committees find that the downturn in the State's economy has negatively affected the ability of Hawaii's health centers to serve the public. The tax incentive provided in this bill would enable federally qualified health centers, which are nonprofit corporations within specially designated underserved areas of the state, to better serve the uninsured, poor, and indigent.

 

 

As affirmed by the records of votes of the members of your Committees on Human Services and Housing and Health that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2646 and recommend that it pass Second Reading and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committees on Human Services and Housing and Health,

 

____________________________ DENNIS A. ARAKAKI, Chair		____________________________ MICHAEL P. KAHIKINA, Chair