STAND. COM. REP. NO.  709

 

Honolulu, Hawaii

                , 2007

 

RE:   H.B. No. 355

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Sir:

 

     Your Committees on Health and Human Services & Housing, to which was referred H.B. No. 355 entitled:

 

"A BILL FOR AN ACT RELATING TO CAREGIVERS,"

 

beg leave to report as follows:

 

     The purpose of this measure is to provide a tax credit to caregivers who care for a related disabled elderly person in their homes.

 

     Your Committees received testimony supporting this measure from the International Longshore and Warehouse Union Local 142, Local 5 Hawaii, and a concerned citizen.  Your Committee also received comments from the Department of Taxation.  The Hawaii Aging Advocates Coalition supported the intent of this measure and the Policy Advisory Board for Elder Affairs supported the measure with reservations.

 

     Your Committees finds that home and community-based care is increasingly becoming the preferred method of providing long-term care for the disabled elderly.  Homecare avoids the high cost of institutional care and provides a healthy and safe environment for the disabled elderly who often prefer to remain in a home setting with family.  Home care providers, however, often forego their own needs and responsibilities to care for a loved one.  Many caregivers experience financial difficulties and are forced to take paid or unpaid leaves of absence and even early retirement.

 

     This measure would provide a modicum of relief for caregivers to continue to assist their loved ones in a home care setting.

 

     Your Committees have amended the measure by adopting the recommendations of the Department of Taxation to:

 

     (1)  Pay out the tax credit in the order that the tax credit is claimed, subject to an overall cap;

 

     (2)  Clarify that the tax credit applies to a taxpayer that is subject to the state income tax;

 

     (3)  Clarify that "taxable year" when referred to in this measure means a care recipient who resides with a caregiver for at least nine months in the year the tax credit is claimed;

 

     (4)  Clarify that "net income tax" means the tax credit is reduced by all other tax credits claimed by the taxpayer;

 

     (5)  Remove the provision requiring taxpayers to be in compliance with all laws;

 

     (6)  Clarify the definition of "qualified care recipient";

 

     (7)  Require the Department of Taxation to act as a conduit for information sent from the Office on Aging to caregivers; and

 

     (8)  Appropriate an unspecified amount to assist the Department of Taxation with information sent from the Executive Office on Aging to caregivers.

 

     As affirmed by the records of votes of the members of your Committees on Health and Human Services & Housing that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 355, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 355, H.D. 1, and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committees on Health and Human Services & Housing,

 

 

____________________________

MAILE SHIMABUKURO, Chair

 

____________________________

JOSHUA B. GREEN, M.D., Chair