Lingle vetoes bills that would have rolled back tax credits... - Hawaii News Now - KGMB and KHNL

Lingle vetoes bills that would have rolled back tax credits and deductions

HONOLULU (HawaiiNewsNow) - Governor Linda Lingle vetoed two tax bills Thursday. The first would have brought forward to May the last date by which people would have to had made investments to claim a high-technology tax credit. Lingle said Thursday the legislation would undermine the state's efforts to expand the economy and create new jobs if it became law.

"The bill sends the wrong signal to entrepreneurs, business managers and investors that Hawaii State officials cannot be trusted to maintain promised investment incentives. It would prove Hawaii's word is no good and that we are willing to change the rules in the middle of the game when it suits us" said Governor Lingle in a statement.

The bill, SB 2001, would have rolled back the deadline on the state's High Technology Business Investment tax credit and the Technology Infrastructure Renovation tax credit. The current law had the tax credits expiring on December 21, 2010; the bill she vetoed would have retroactively pushed the deadline back six months to May 1, 2010.

The second bill she vetoed would have temporarily placed a cap on itemized deductions claimed on state income tax returns until 2016. Lingle says this bill would have discouraged charitable contributions if she signed it.

"Our community is still feeling the impacts of the recession and this is the time when we want to encourage donations to charitable organizations, not enact laws that hinder them."

Lingle said that HB 1907 amounted to a $140 million tax increase over the next five years.

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