STAND. COM. REP. NO. 2601

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2058
                                        S.D. 1




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

Sir:

     Your Committee on Ways and Means, to which was referred
S.B. No. 2058 entitled: 

     "A BILL FOR AN ACT RELATING TO INCOME TAX CREDITS,"

begs leave to report as follows:

     The purpose of this measure is to allow Hawaii income
taxpayers to claim a percentage of the federal earned income tax
credit.

     Testimony in support of this measure was received from the
Department of Taxation, the Hawaii State Commission on the Status
of Women, and an individual.  Comments on this measure were
received from the Tax Foundation of Hawaii.

     Your Committee believes the passage of this measure will
assist Hawaii's low income residents.  Your Committee has amended
this measure by:

     (1)  Deleting section one and appropriately renumbering the
          remaining sections;

     (2)  Providing for claims by partial year residents and
          requiring taxpayers to file Hawaii taxes using the same
          filing status (i.e. married, single, etc.) as filed
          with the Internal Revenue Service; and

     (3)  Amending the language for clarity.


 
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                                   STAND. COM. REP. NO. 2601
                                   Page 2


     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of
S.B. No. 2058, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 2058,
S.D. 1, and be placed on the calendar for Third Reading.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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