STAND. COM. REP. NO. 1276

Honolulu, Hawaii

, 2005

RE: H.B. No. 802

H.D. 1

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Human Services, to which was referred H.B. No. 802, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INDIVIDUAL DEVELOPMENT ACCOUNT CONTRIBUTION TAX CREDIT,"

begs leave to report as follows:

The purpose of this measure is to encourage contributions to Individual Development Accounts (IDA) by increasing the IDA contribution tax credit from fifty per cent to one hundred per cent of the amount contributed.

Your Committee received testimony in support of this measure from the Hawaii Alliance for Community Based Economic Development, Chaminade University, Pacific Gateway Center, Hawaii HomeOwnership Center, Legal Aid Society, National Association of Social Workers, Aloha United Way, and an individual. Comments was received from the Department of Taxation and the Tax Foundation of Hawaii.

Your Committee finds that providing a tax credit equal to the amount contributed by the taxpayer towards an individual development account would encourage more people to establish such accounts.

Your Committee has amended this measure by extending the sunset tax credit from December 31, 2004 to December 31, 2009.

As affirmed by the record of votes of the members of your Committee on Human Services that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 802, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 802, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Human Services,

____________________________

SUZANNE CHUN OAKLAND, Chair