STAND. COM. REP. NO. 2150

Honolulu, Hawaii

, 2019

RE: S.B. No. 972

S.D. 1

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 S.B. No. 972, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SHIP REPAIR INDUSTRY,"

begs leave to report as follows:

The purpose of this measure is to establish the Ship Repair Industry Tax Credit to offset costs incurred to construct and place into service a purpose-built floating drydock at Pearl Harbor for use by the United States Navy and repeal the capital infrastructure tax credit.

The Ship Repair Association of Hawaii, The Chamber of Commerce Hawaii, and a few individuals submitted testimony in support of this measure. A&B Electric Co., Inc.; Marisco, Ltd.; and C&S Services, Inc. submitted testimony in opposition to this measure. The Department of Taxation and an individual submitted comments on this measure.

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 S.B. No. 972, S.D. 1, 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