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, Hawaii Alliance for Community-Based Economic Development, Hawaii Appleseed Center for Law & Economic Justice, Pono Hawaii Initiative, Life of the Land, Hawaiian Community Assets, Hawaii Alliance for Progressive Action, Hawaii 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,

 

 

 

________________________________

JOSH GREEN, Chair