STAND. COM. REP. NO. 1416

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 170
                                        H.D. 2
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 170, H.D. 2, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO LONG-TERM CARE TAX BENEFITS,"

begs leave to report as follows:

     The purpose of this bill is to establish an income tax
credit equal to half of the long-term care insurance premiums
paid by a taxpayer.

     This measure allows a resident taxpayer to take a credit
against their tax liability for any taxable year in an amount
equal to fifty per cent of the premiums paid for long-term care
insurance, but not to exceed $1,000.  It includes premiums paid
by the taxpayer for long-term care policies for the taxpayer, a
dependent, a taxpayer's spouse, or parent.

     Your Committee finds that giving taxpayers a credit against
their tax liability will encourage taxpayers to provide long-term
care for themselves and their families.  The more taxpayers who
purchase long-term care policies, the lighter the load will be to
the State in caring for our aging population.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your

 
a                                                     HB170 SD1
 
 
 
                                   STAND. COM. REP. NO. 1416
                                   Page 2


Committee is in accord with the intent and purpose of H.B.
No. 170, H.D. 2, S.D. 1, and recommends that it pass Third
Reading.

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



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
a                                                     HB170 SD1