CONFERENCE COMMITTEE REPORT NO.90

                            Honolulu, Hawaii
                                            , 2000

                            RE:   S.B. No. 2056
                                  S.D. 1
                                  H.D. 1
                                  C.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

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

Sir:

     Your Committee on Conference on the disagreeing vote of the
Senate to the amendments proposed by the House of Representatives
in S.B. No. 2056, S.D. 1, H.D. 1, entitled:  

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

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this measure is to establish an Individual
Development Account Contribution tax credit equal to fifty per
cent of a contribution.

     This measure establishes the Individual Development Account
Contribution tax credit which is a nonrefundable income tax
credit of fifty per cent of the amount contributed by
individuals, organizations, and businesses to fiduciary
organizations.  Excess credits may be carried over to subsequent
years until exhausted.  The credit is allowed for tax years 2000

 
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to 2004, and claims for the credit must be certified by the
Department of Human Services (DHS).

     Your Committee on Conference has amended this measure by:

     (1)  Requiring the DHS to total all contributions to
          individual development accounts that it certifies; and

     (2)  Requiring the DHS to discontinue certifying when the
          total amount reaches $1,000,000, and limiting the total
          amount of certified contributions to that amount over
          the five-year period between January 1, 2000, and
          December 31, 2004.

     As affirmed by the record of votes of the managers of your
Committee on Conference that is attached to this report, your
Committee on Conference is in accord with the intent and purpose
of S.B. No. 2056, S.D. 1, H.D. 1, as amended herein, and
recommends that it pass Final Reading in the form attached hereto
as S.B. No. 2056, S.D. 1, H.D. 1, C.D. 1.

                                   Respectfully submitted on
                                   behalf of the managers:

  ON THE PART OF THE HOUSE           ON THE PART OF THE SENATE



_____________________________     _______________________________
Rep. DENNIS A. ARAKAKI            Sen. CAROL FUKUNAGA
Co-Chair                          Chair



_____________________________     
Rep. MICHAEL PUAMAMO KAHIKINA
Co-Chair

 
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