STAND. COM. REP. NO. 131

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1197

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Madam:

 

     Your Committee on Human Services and Public Housing, to which was referred S.B. No. 1197 entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose of this measure is to establish an income tax credit for taxpayers who make modifications to their homes to increase accessibility for individuals with disabilities.

 

     The Disability and Communication Access Board, AARP Hawaii, and the Hawaii Aging Advocates Coalition submitted testimony in support of this measure.  The Department of Taxation submitted comments.

 

     Your Committee finds that enabling elderly individuals to age-in-place, in their own or their families' homes, will allow them to live happier, healthier lives.  However, caring for an elderly individual in the home often necessitates that accommodations or modifications be made to increase accessibility and facilitate caregiving responsibilities.  For instance, ramps may be necessary for wheelchair accessibility or grab-bars may be necessary in a bathtub.  These types of home modifications can be costly.  However, it would be more costly to move an elderly or disabled individual to a facility, and facility accommodations are limited.

 

     It is the Committee's intent to avoid enabling a taxpayer to deduct the cost of retrofitting a home as a medical expense for both Hawaii and federal income tax purposes.  So, upon further consideration, your Committee has amended this measure by:

 

     (1)  Providing that if a taxpayer claims a similar tax credit or deduction for state or federal income tax purposes, no tax credit can be claimed under this measure; and

 

     (2)  Making technical, nonsubstantive changes for the purposes of clarity, consistency, and style.

 

     The Department of Taxation testified that it was unable to determine the fiscal impact of the measure since the amount of the tax credit is unspecified.

 

     As affirmed by the record of votes of the members of your Committee on Human Services and Public Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1197, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1197, S.D. 1, and be referred to the Committee on Economic Development and Taxation.

 

Respectfully submitted on behalf of the members of the Committee on Human Services and Public Housing,

 

 

 

____________________________

SUZANNE CHUN OAKLAND, Chair