STAND. COM. REP. NO. 706-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2432
                                     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.
2432 entitled: 

     "A BILL FOR AN ACT RELATING TO LOW-INCOME HOUSING TAX
     CREDIT,"

begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Allow partnership, limited liability company, and S
          corporation investors to claim the state low-income
          housing tax credit whether or not they claim the
          federal low-income tax credit; and

     (2)  Allow entities taxed as partnerships to allocate the
          state low-income tax credit among its partners and
          members.

     The Department of Taxation and the Housing and Community
Development Corporation of Hawaii supported this bill.  The Tax
Foundation of Hawaii commented on this bill.

     Your Committee has amended this bill by making technical,
nonsubstantive changes for style and clarity.

     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.
2432, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as H.B. No. 2432, H.D. 1.

 
                                 STAND. COM. REP. NO. 706-00
                                 Page 2

 

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair