STAND. COM. REP. NO. 1103

Honolulu, Hawaii

, 2019

RE: H.B. No. 339

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 339, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Increase the refundable tax credit for research activities from 100 percent of the allowed federal credit to 125 percent of the allowed federal credit for work done in Hawaii; and

(2) Extend the sunset date for the tax credit from 2019 to an unspecified date.

The Chamber of Commerce Hawaii; Makai Ocean Engineering, Inc.; and an individual submitted testimony in support of this measure. The Department of Taxation, Hawaii Technology Development Corporation, and Tax Foundation of Hawaii provided comments.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 339, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair