STAND. COM. REP. NO.1137

Honolulu, Hawaii

, 2003

RE: H.B. No. 339

H.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Education, to which was referred H.B. No. 339, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO A COLLEGE SAVINGS PROGRAM TAX CREDIT,"

begs leave to report as follows:

The purpose of this measure is to provide a tax credit for contributions to a college savings program.

Hawaii State Teachers Association submitted testimony supporting this measure. The University of Hawaii submitted testimony in support of the intent of this measure. The Department of Taxation and Tax Foundation of Hawaii submitted comments on this measure.

Your Committee finds that an array of savings opportunities and direct financial assistance to students are needed to enable students and families to have the financial means to attend college. Education and training are essential to meaningful careers for our citizens who will, in turn, contribute to the community as responsible taxpayers. The establishment of a college savings tax credit encourages and supports college attendance.

Your Committee notes that it considered the suggestion to make the college savings an adjustment to gross income, much like an IRA, rather than as a tax credit. However, the title of the measure is too restrictive.

As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 339, H.D. 2, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

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

____________________________

NORMAN SAKAMOTO, Chair