STAND. COM. REP. NO. 221

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1076
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Government Operations and Housing, to
which was referred S.B. No. 1076 entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to permit insurers to take a
low-income housing credit.

     Your Committee received testimony in support of this measure
from the Department of Taxation, and Housing and Community
Development Corporation of Hawaii.  The Insurance Commissioner
provided informational testimony and took no position on this
measure.

     This measure is intended to extend to insurers the same tax
deduction allowed to banks and financial institutions in Hawaii
that the Internal Revenue Code.  Insurance companies have no
similar statutory tax credit.

     Your Committee believes that this measure will encourage the
flow of capital into Hawaii by providing insurance companies the
same incentives enjoyed by individuals and financial institutions
to invest in low-income housing projects.

     As affirmed by the record of votes of the members of your
Committee on Government Operations and Housing that is attached
to this report, your Committee is in accord with the intent and

 
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                                   STAND. COM. REP. NO. 221
                                   Page 2


purpose of S.B. No. 1076 and recommends that it pass Second
Reading and be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Government
                                   Operations and Housing,



                                   ______________________________
                                   ROD TAM, Chair

 
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