STAND. COM. REP. NO.  600

Honolulu, Hawaii

                , 2015

RE:   H.B. No. 1182

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1182 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to amend the income tax credit for expenses for household and dependent care services necessary for gainful employment by changing the manner in which the taxpayer's applicable percentage of employment-related expenses is determined.

The ILWU Local 142, Hawaii Appleseed Center for Law and Economic Justice, and Laborers' International Union of North America Local 368 provided testimony in support of this measure.  The Department of Taxation and Tax Foundation of Hawaii submitted comments on this measure.

     Your committee has amended this measure by changing its effective date to July 1, 2030, to encourage further discussion, and making technical, nonsubstantive amendments for clarity, consistency, and style.

     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. 1182, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1182, H.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

SYLVIA LUKE, Chair