STAND. COM. REP. NO.  1178

 

Honolulu, Hawaii

                , 2023

 

RE:   H.B. No. 954

      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. 954, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose of this measure is to change the amount of the state earned income tax credit to an unspecified percentage of the federal earned income tax credit allowed based on an individual's federal income tax return.

 

     Your Committee received testimony in support of this measure from the Early Childhood Action Strategy, Hawai‘i Children's Action Network Speaks!, Hawai‘i Health & Harm Reduction Center, Democratic Party of Hawai‘i Education Caucus, Imua Alliance, Hawaii Appleseed Center for Law & Economic Justice, Hawai‘i Alliance for Progressive Action, and six individuals.  Your Committee received comments on this measure from the Department of Budget and Finance and Department of Taxation.

 

     Your Committee has amended this measure by:

 

     (1)  Inserting provisions to amend the taxable income bracket and income tax rate, personal exemption, and standard deduction amounts for taxable years beginning after December 31, 2022;

 

     (2)  Inserting provisions that 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)  Making technical, nonsubstantive amendments 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. 954, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 954, H.D. 2.

 

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

 

 

 

 

____________________________

KYLE T. YAMASHITA, Chair