Small-business group urges veto of tax credit repeal

The Small Business & Entrepreneurship Council, a national small-business advocacy group, has asked Hawaii Gov. Linda Lingle to veto a bill that would suspend a popular tax credit. The council in a June 18 letter to Lingle urged her to veto Senate Bill 2001, a measure that would suspend tax credits for technology infrastructure and high-technology business investment but extend tax credits to research activities for one year.

On June 9, while Lingle was traveling in China, Lt. Gov. James “Duke” Aiona vetoed a bill that would have suspended Act 221 investment and infrastructure renovation tax credits for three years and used a report created by the SBE Council in explaining his veto. The group protects small businesses and promotes entrepreneurship by educating elected officials and business leaders about policies related to business startups and growth.

The SBE Council’s letter referred to the “Small Business Survival Index,” which ranks Hawaii as 42nd, or 10th worst, among the 50 states and District of Columbia for its public policy climate for entrepreneurship and small business.

“Increased taxes on investment are never good for small business and the economy, with retroactive increases in levies not only being grossly unfair, but also sending a message that lawmakers are rather cavalier about policymaking and its effects,” Karen Kerrigan, president and CEO of the SBE Council said in the letter.

Lingle can sign the bill into law, let it become law without her signature, or veto it.