Numerology: 221, 215, 235-110.9
I'd like to clarify some numbers and terms that get thrown around a lot when people talk about the state's "High Technology Business Investment Tax Credit." Sometimes they call it "Act 221," sometimes it's known as "Act 215," and for the really nerdy, it's referred to as HRS 235-110.9 (HRS = "Hawaii Revised Statutes"). Let me explain why this investment tax credit is known by so many different names and numbers.
First let's start with a short lesson on how statutes get created. A "statute" is a law enacted by a legislature. They start out as bills, then become acts, then become statutes.
When bills get passed, they become acts. Each year, there are a whole new set of acts, which means that the Act 221 in 2001 is different from the Act 221 in 2002, 2003, etc. For example, the Act 221 in 2004 established a revolving fund to pay for the operation of the A-plus afterschool program for latchkey kids. And the Act 221 in 2002 granted employers reasonable time to file worker injury reports. You'll note that these two Act 221s have nothing to do with film, TV, or tax credits.
So, it is important when talking about Act numbers to note which year you are talking about. In our investment tax credit case, Act 221 refers to the Act 221 in 2001, and Act 215 refers to the Act 215 in 2004.
This means that in 2001, someone introduced a bill that proposed the establishment of a high-tech investment tax credit that would be applicable to film/TV. This bill passed through the legislature and became Act 221 when the governor signed it into law. Act 221 then became incorporated into our Hawaii Revised Statutes ("HRS") in Chapter 235, Section 110.9. In shorthand, this is written as HRS 235-110.9.
Three years later in 2004, another bill was introduced to make revisions and refinements to HRS 235-110.9, like extending the tax credit expiration date from the end of 2005 to the end of 2010, outlining additional reporting requirements for investors, and establishing a protocol for the Tax Department to issue comfort letters. This bill was also passed by the legislature, and it became Act 215 when the gov signed it into law. The changes outlined by Act 215 were then incorporated into the already existing statute, HRS 235-110.9.
So now you can see why the "High Technology Business Investment Tax Credit," the verbal title of HRS 235-110.9, is known by these different names.
In Summary:
Act 221: The act passed by the legislature and signed by the governor in 2001 that first established the "High Technology Business Investment Tax Credit," which was then added to the Hawaii Revised Statutes in Chapter 235 as Section 110.9 (HRS 235-110.9).
Act 215: The act passed by the legislature and signed by the governor in 2004 that made revisions to HRS 235-110.9, the High Technology Business Investment Tax Credit. These revisions included extending the credit expiration date from the end of 2005 to the end of 2010, outlining additional reporting requirements for investors, and establishing a protocol for the Tax Department to issue comfort letters.
HRS 235-110.9: Short for "Hawaii Revised Statutes, Chapter 235, Section 110.9," this is the chapter and section of Hawaii's statutes that explains the High Technology Business Investment Tax Credit.
First let's start with a short lesson on how statutes get created. A "statute" is a law enacted by a legislature. They start out as bills, then become acts, then become statutes.
When bills get passed, they become acts. Each year, there are a whole new set of acts, which means that the Act 221 in 2001 is different from the Act 221 in 2002, 2003, etc. For example, the Act 221 in 2004 established a revolving fund to pay for the operation of the A-plus afterschool program for latchkey kids. And the Act 221 in 2002 granted employers reasonable time to file worker injury reports. You'll note that these two Act 221s have nothing to do with film, TV, or tax credits.
So, it is important when talking about Act numbers to note which year you are talking about. In our investment tax credit case, Act 221 refers to the Act 221 in 2001, and Act 215 refers to the Act 215 in 2004.
This means that in 2001, someone introduced a bill that proposed the establishment of a high-tech investment tax credit that would be applicable to film/TV. This bill passed through the legislature and became Act 221 when the governor signed it into law. Act 221 then became incorporated into our Hawaii Revised Statutes ("HRS") in Chapter 235, Section 110.9. In shorthand, this is written as HRS 235-110.9.
Three years later in 2004, another bill was introduced to make revisions and refinements to HRS 235-110.9, like extending the tax credit expiration date from the end of 2005 to the end of 2010, outlining additional reporting requirements for investors, and establishing a protocol for the Tax Department to issue comfort letters. This bill was also passed by the legislature, and it became Act 215 when the gov signed it into law. The changes outlined by Act 215 were then incorporated into the already existing statute, HRS 235-110.9.
So now you can see why the "High Technology Business Investment Tax Credit," the verbal title of HRS 235-110.9, is known by these different names.
In Summary:
Act 221: The act passed by the legislature and signed by the governor in 2001 that first established the "High Technology Business Investment Tax Credit," which was then added to the Hawaii Revised Statutes in Chapter 235 as Section 110.9 (HRS 235-110.9).
Act 215: The act passed by the legislature and signed by the governor in 2004 that made revisions to HRS 235-110.9, the High Technology Business Investment Tax Credit. These revisions included extending the credit expiration date from the end of 2005 to the end of 2010, outlining additional reporting requirements for investors, and establishing a protocol for the Tax Department to issue comfort letters.
HRS 235-110.9: Short for "Hawaii Revised Statutes, Chapter 235, Section 110.9," this is the chapter and section of Hawaii's statutes that explains the High Technology Business Investment Tax Credit.
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posted by mynette at
11:04 AM
