STAND. COM. REP. NO.  243

Honolulu, Hawaii

                , 2017

RE:   H.B. No. 128

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Higher Education, to which was referred H.B. No. 128 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure to establish a college savings program income tax credit.

One individual provided testimony in support of this measure.  The Department of Budget and Finance, Department of Taxation, and Tax Foundation of Hawaii offered comments.

     Your Committee finds that Hawaii's college savings program is codified as chapter 256, Hawaii Revised Statutes, and that this measure is intended to create an incentive for taxpayers to invest in the college savings program.  Your Committee notes that other jurisdictions allow contributions to a college savings program to be used as a tax deduction.

     Your Committee has amended this measure by:

     (1)  Clarifying that the tax credit applies to a taxpayer's net income tax liability, and is based on contributions made by the taxpayer; and

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

     As affirmed by the record of votes of the members of your Committee on Higher Education that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 128, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 128, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

JUSTIN H. WOODSON, Chair