STAND. COM. REP. NO. 364-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 1908
                                     




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

Sir:

     Your Committee on Human Services and Housing, 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 provide an income tax credit
for an individual development account contribution by:

     (1)  Allowing a taxpayer to claim fifty percent of the
          amount contributed to the individual development
          account;

     (2)  Allowing any excess of the credit to carry over to the
          subsequent years until exhausted where the credit
          exceeds the taxpayer's liability for the tax year;

     (3)  Allowing the credit for a five-year period from tax
          years 2000 to 2004; and

     (4)  Restricting the aggregate amount of the credit to
          $1,000,000 for the five-year period.

     The Hawaii State Commission on the Status of Women, the
Mutual Housing Association of Hawaii, the Bank of Hawaii, the
Department of Human Services, the Office of Hawaiian Affairs, the
Hawaii Alliance for Community Based Economic Development, the
American Friends Service Committee, the Legal Aid Society, and

 
 
                                 STAND. COM. REP. NO. 364-00
                                 Page 2

 
the Department of Taxation testified in support of this bill.
The Tax Foundation of Hawaii commented on this bill.

     As affirmed by the record of votes of the members of your
Committee on Human Services and Housing that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 1908 and recommends that it pass Second Reading and
be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Human Services
                                   and Housing,



                                   ______________________________
                                   DENNIS A. ARAKAKI, Chair