STAND. COM. REP. NO. 1090-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2385

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. 2385, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

The purpose of this measure is to authorize the Hawaii Housing Finance and Development Corporation to approve and certify general excise tax exemptions for certain housing development projects developed under county housing incentive programs.

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; Maui Chamber of Commerce; Hawaiʻi Appleseed Center for Law & Economic Justice; Centre Urban Real Estate; and one individual. Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee has amended this measure by repealing a provision that required county housing projects to be granted a general excise or receipts tax exemption in the same manner as projects undertaken by the Hawaii Housing Finance and Development Corporation, as this provision may conflict with the purpose of this measure.

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. 2385, H.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2385, H.D. 3.

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

____________________________

CHRIS TODD, Chair