Cayetano approves
tax breaks for airline,
filmmakers, hotels

He says he plans to reintroduce
breaks for health care, home buying
and overseas work

By Mike Yuen
Star-Bulletin

Gov. Ben Cayetano says he plans to reintroduce his tax-break proposals for long-term health care, first-time home buyers and work done overseas by construction-related professionals.

The initiatives, which didn't pass in this year's legislative session, will be ready for next year's session.

Cayetano said yesterday he is also crafting proposals to further stimulate the state's economy and help businesses.

He declined to provide specifics, but would only say they were geared to cutting red tape at the state and county levels and attracting businesses to the isles.

He will be talking to Senate President Norman Mizuguchi (D, Aiea), House Speaker Joe Souki (D, Wailuku) and business and union leaders to ensure smooth sailing for his initiatives next year.

Yesterday, Cayetano signed into law measures that:

Grant nearly $2 million in tax breaks to Continental to help the airline build and operate a jumbo-jet maintenance hangar in Hawaii.

Establish an income tax credit for producing movies or television shows in the state.

Grant an income tax credit for two years for hotel renovation. Credit shall be 4 percent of renovation costs, but not exceeding 10 percent of the hotel room tax paid in the preceding tax year.

"The state cannot revitalize this economy all by itself," Cayetano said. "What you saw today is the state's way of saying to business here that we are now providing some opportunities. And we hope you take advantage of these opportunities."