STAND. COM. REP. NO. 2216
Honolulu, Hawaii
RE: S.B. No. 2309
Honorable Ronald D. Kouchi
President of the Senate
Twenty-Ninth State Legislature
Regular Session of 2018
State of Hawaii
Sir:
Your Committee on Human Services, to which was referred S.B. No. 2309 entitled:
"A BILL FOR AN ACT RELATING TO THE EARNED INCOME TAX CREDIT,"
begs leave to report as follows:
The purpose and intent of this measure is to make the State's nonrefundable earned income tax credit (EITC) refundable.
Your Committee received testimony in support of this measure from Parents and Children Together, Hawaii Children's Action Network, American Association of University Women-Hawaii, Hawaii State Coalition Against Domestic Violence, Hawaii Women's Coalition, Hawai‘i Alliance for Community-Based Economic Development, Hawaii Appleseed Center for Law & Economic Justice, Pono Hawai‘i Initiative, Life of the Land, Hawaiian Community Assets, Hawaii Alliance for Progressive Action, Hawai‘i State Democratic Women's Caucus, and six individuals. Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.
Your Committee finds that Act 107, Session Laws of Hawaii 2017, established a nonrefundable ETIC. Your Committee further finds that the federal EITC is refundable, and two-thirds of families in Hawaii who are eligible for the State's EITC are not benefitting because the tax credit is nonrefundable. Your Committee notes that the EITC is designed as an anti-poverty program to help low-income families and would assist families in need. Making the EITC refundable would assist a greater number of families in need.
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 S.B. No. 2309 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Human Services,
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________________________________ JOSH GREEN, Chair |
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