STAND. COM. REP. NO. 530

Honolulu, Hawaii

, 2005

RE: H.B. No. 172

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Economic Development & Business Concerns, to which was referred H.B. No. 172 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this bill is to provide employers who hire active members of the Hawaii National Guard an income tax credit equal to five percent of the employee's salary or wage costs in a taxable year, with a maximum credit of $1,000 per qualified employee in a taxable year.

The Chamber of Commerce of Hawaii, Hawaii National Guard Enlisted Association, and a concerned individual testified in support of this measure. The Department of Taxation (DOTAX) and Tax Foundation of Hawaii provided comments.

Your Committee has amended this bill by:

(1) Requiring the employer claiming the tax credit to provide DOTAX with documentation of the employee's National Guard membership;

(2) Making clarifying amendments to conform the provisions of this measure with other tax-related statutes; and

(3) Making other technical, nonsubstantive amendments for clarity and style.

As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 172, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as H.B. No. 172, H.D. 1.

 

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business Concerns,

 

____________________________

ROBERT N. HERKES, Chair