STAND. COM. REP. NO. 1021-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2438

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. 2438, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII CULTURAL TRUST,"

begs leave to report as follows:

The purpose of this measure is to establish:

(1) The Hawaii Cultural Trust within the Department of Business, Economic Development, and Tourism;

(2) An income tax credit for contributions made to the Hawaii Cultural Trust and qualified Hawaiʻi cultural organizations, under certain conditions; and

(3) A special number plate for motor vehicles to support the Hawaii Cultural Trust.

Your Committee received testimony in support of this measure from the Office of Hawaiian Affairs; State Foundation on Culture and the Arts; Hawaiʻi Arts Alliance; Pacific Academy of Music; and three individuals. Your Committee received comments on this measure from the Department of Taxation; Department of Business, Economic Development, and Tourism; Department of Customer Services of the City and County of Honolulu; and Tax Foundation of Hawaii.

Your Committee has amended this measure by:

(1) Clarifying that a taxpayer may claim the credit only if the taxpayer makes monetary contributions during the taxable year to both the Hawaii Cultural Trust and at least one qualified Hawaii cultural organization; and

(2) 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. 2438, H.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2438, H.D. 3.

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

____________________________

CHRIS TODD, Chair