STAND. COM. REP. NO. 2315

Honolulu, Hawaii

RE: S.B. No. 2309

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2309 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose and intent of this measure is to make the state earned income tax credit refundable and permanent.

Your Committee received testimony in support of this measure from the Department of Human Services; AAUW of Hawaii; Aloha United Way; Americans for Democratic Action; Breastfeeding Hawaii; Catholic Charities Hawaii; Community Alliance on Prisons; HACBED; Hawaii Appleseed Center for Law and Economic Justice; Hawaii Children's Action Network Speaks!; Hawaii Health and Harm Reduction Center; Hawaiian Community Assets and Hawaii Community Lending; ILWU Local 142; League of Women Voters Hawaii; LGBT Caucus of the Democratic Party of Hawaii; Planned Parenthood Votes Northwest and Hawaii; Pono Hawaii Initiative; and seven concerned individuals.

Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that making the earned income tax credit refundable will assist a greater number of working-class families with children to retain more of their income.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(2) Making technical nonsubstantive amendments for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2309, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2309, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair