STAND. COM. REP. NO. 847________

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1026
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No.
1026, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO INSURANCE PREMIUM TAXES,"

begs leave to report as follows:

     The purpose of this bill is to allow insurance companies to
offset their insurance premium taxes with the low-income housing
tax credit (credit) provided under the income tax law by
extending the credit to the insurance premium tax under the
Insurance Code.

     The Department of Taxation and the Housing and Community
Development Corporation of Hawaii testified in support of this
measure.  The Tax Foundation of Hawaii commented on this measure.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
1026, H.D. 1, and recommends that it pass Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair