STAND. COM. REP. NO. 1160-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1851

H.D. 3

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Finance, to which was referred H.B. No. 1851, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to establish an Apprenticeship Program Income Tax Credit for certain qualified costs incurred by a qualified apprenticeship program.

Your Committee received testimony in support of this measure from the Department of Labor and Industrial Relations; Chamber of Commerce Hawaii; Hawaii Food Industry Association; Maui Chamber of Commerce; Hawaii Primary Care Association; and Kohala Coast Resort Association. Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee has amended this measure by changing the aggregate cap of the tax credit to an unspecified amount.

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. 1851, H.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1851, H.D. 3.

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

____________________________

CHRIS TODD, Chair