STAND. COM. REP. NO. 764-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 1908
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No.
1908 entitled: 

     "A BILL FOR AN ACT RELATING TO INDIVIDUAL DEVELOPMENT
     ACCOUNT CONTRIBUTION TAX CREDITS,"

begs leave to report as follows:

     The purpose of this bill is to encourage low-income persons
to save by establishing a tax credit of 50 per cent of the amount
contributed to an Individual Development Account (IDA).

     The Department of Taxation, Department of Human Services,
Office of Hawaiian Affairs, Hawaii State Commission on the Status
of Women, Bank of Hawaii, American Friends Service Committee,
Mutual Housing Association of Hawaii, Inc., Hawaii Alliance for
Community-Based Economic Development, and an individual supported
this bill.  The Tax Foundation of Hawaii commented on this bill.

     Upon further consideration, your Committee has amended this
bill by:

     (1)  Providing that no tax credit shall be allowed for the
          portion of the contribution for which a charitable
          deduction was already taken; 

     (2)  Adding a proviso that section 3 shall take effect
          retroactive to June 28, 1999; and

     (3)  Making technical, nonsubstantive amendments for style
          and clarity.


 
                                 STAND. COM. REP. NO. 764-00
                                 Page 2

 
     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.
1908, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as H.B. No. 1908, H.D. 1.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair