STAND. COM. REP. NO. 741-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 1662

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 1662 entitled:

"A BILL FOR AN ACT RELATING TO A CHILD TAX CREDIT,"

begs leave to report as follows:

The purpose of this measure is to establish a refundable child tax credit.

Your Committee received testimony in support of this measure from the Office of Hawaiian Affairs; Department of Human Services; Executive Office on Early Learning; Early Learning Board; Pride at Work-Hawai‘i; Stonewall Caucus of the Democratic Party of Hawai‘i; Save Medicaid Hawaii; North Hawaii Community Action Network; Holomua Collaborative; Democratic Party of Hawai‘i; Democratic Party of Hawai‘i Education Caucus; Imua Alliance; Democratic Party of Hawai‘i Labor Caucus; Breastfeeding Hawaii; UNITE HERE Local 5; Catholic Charities Hawai‘i; Hawaii Appleseed Center for Law & Economic Justice; Early Childhood Action Strategy; Commit to Keiki; Aloha United Way; ADA Hawai‘i; IATSE Local 665; Parents and Children Together; Hawai‘i Public Health Institute; Hawai‘i Health & Harm Reduction Center; Hawaii HomeOwnership Center; aio; Hawaiʻi Gas; Hawaiian Host Group; Hawaʻi Community Foundation; Mana Up; Title Guaranty Hawaii; HPM Building Supply; Hawaii State AFL-CIO; CARES; Hawaiʻi Workers Center; Hawaiʻi Children's Action Network Speaks!; Chamber of Commerce Hawaii; and numerous individuals. Your Committee received comments on this measure from the Office of the Governor; Department of Taxation; and Tax Foundation of Hawaii.

Your Committee finds that Hawaii has the highest cost of living in the country at nearly twice the national average. The high cost of living has made it extremely difficult for working families to afford necessities. This measure will provide relief for working families paying for child care and other necessities and help reduce the choice some families may face in deciding whether to start a family.

Your Committee has amended this measure by:

(1) Changing the refundable tax credit to unspecified amounts; and

(2) Changing the effective date to July 1, 3000, to encourage further discussion.

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. 1662, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1662, H.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

KYLE T. YAMASHITA, Chair