STAND. COM. REP. NO. 1104

Honolulu, Hawaii

, 2023

RE: H.B. No. 1327

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 1327, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAX CREDITS,"

begs leave to report as follows:

The purpose of this measure is to establish an income tax credit of up to $500 per taxable year for qualified expenses incurred by teachers and other school personnel employed by the Department of Education, Hawaii State Public Library System, or as part of a Head Start Program in a school.

Your Committee received testimony in support of this measure from the Democratic Party of Hawai‘i Education Caucus, Hawaii State Teachers Association, and one individual. Your Committee received comments on this measure from the Department of Taxation, Department of Budget and Finance, Department of Education, and Tax Foundation of Hawaii.

Your Committee has amended this measure by:

(1) Changing the tax credit to an unspecified amount; and

(2) Making a technical, nonsubstantive amendment for the purposes of 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. 1327, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1327, H.D. 2.

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

____________________________

KYLE T. YAMASHITA, Chair