CONFERENCE COMMITTEE REP. NO. 135

Honolulu, Hawaii

, 2023

RE: H.B. No. 954

H.D. 2

S.D. 2

C.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sirs:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 954, H.D. 2, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to:

(1) Increase the amounts for the income tax brackets and personal exemption and standard deduction amounts for tax year 2023;

(2) Adjust annually for tax years beginning after December 31, 2023, the income tax brackets and personal exemption, and standard deduction amounts by a cost-of-living adjustment factor; and

(3) Amend the taxable income brackets and income tax rates for each filing status for taxable years beginning after December 31, 2022.

Your Committee on Conference has amended this measure by:

(1) Deleting language which would have:

(A) Defined cost-of-living adjustment factor;

(B) Increased the amounts for the income tax brackets and personal exemption and standard deduction amounts;

(C) Adjusted annually the income tax brackets and personal exemption, and standard deduction amounts by a cost-of-living adjustment factor; and

(D) Amended the taxable income brackets and income tax rates for each filing status;

(2) Inserting language which:

(A) Increases the household and dependent care services tax credit;

(B) Increases the refundable earned income tax credit; and

(C) Increases the income thresholds and credit amounts of the refundable food/excise tax credit;

(3) Inserting a sunset date of December 31, 2027; and

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

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 954, H.D. 2, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 954, H.D. 2, S.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ DONOVAN M. DELA CRUZ Chair	____________________________ DANIEL HOLT Co-Chair
	____________________________ KYLE T. YAMASHITA Co-Chair