STAND. COM. REP. NO. 2818

Honolulu, Hawaii

RE: S.B. No. 2600

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2600 entitled:

"A BILL FOR AN ACT RELATING TO THE GENERAL FUND,"

begs leave to report as follows:

The purpose and intent of this measure is to dispose of excess general fund revenues pursuant to Article VII, section 6 of the Hawaii State Constitution.

More specifically, this measure:

(1) Provides an income tax credit to taxpayers;

(2) Authorizes deposits to the Emergency and Budget Reserve Fund and Other Post-Employment Benefits Trust Fund; and

(3) Appropriates moneys for the tax credits and deposits.

Your Committee received comments on this measure from the Department of Taxation and the Tax Foundation of Hawaii.

Your Committee finds that the timely passage of this measure aligns with the requirement to dispose of excess general fund revenues pursuant to Article VII, section 6 of the Hawaii State Constitution.

Your Committee has amended this measure by changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2600, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2600, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair