HB2596 HD1 HSCR589-04

 

STAND. COM. REP. NO. 589-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 2596

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 2596 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this bill is to assist low-income households by establishing an earned income tax credit. This bill sets the tax credit at 20 percent of the earned income tax credit allowed by the Internal Revenue Service. The tax credit applies to taxable years beginning after December 31, 2003.

The Hawaii State Commission on the Status of Women, Good Beginnings Alliance, National Association of Social Workers, Welfare and Employment Rights Coalition, Pacific Gateway Center, 3Point, and four individuals testified in support of this measure. The Department of Taxation supported the intent of this bill. The Tax Foundation of Hawaii and the National Federation of Independent Business offered comments.

Your Committee has amended this bill by:

(1) Specifying the calculation of the tax credit for part-year residents;

(2) Deleting the amount of the tax credit to encourage further discussion; and

(3) Making technical, nonsubstantive amendments to correct drafting errors.

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 H.B. No. 2596, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2596, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

 

		____________________________ DWIGHT Y. TAKAMINE, Chair