Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Human Services and Housing, to which was referred H.B. No. 336 entitled:

begs leave to report as follows:

The purpose of this bill is to provide an Individual Development Account (IDA) tax credit equal to 100 percent of the amount contributed.

The Waimanalo Community Development Corporation, Hawaii Alliance for Community Based Economic Development, Mutual Housing Association of Hawaii, Consuelo Zobel Alger Foundation, and Alu Like, Inc., submitted testimony in support of this measure.

The Department of Taxation testified in opposition of this measure. The Tax Foundation of Hawaii submitted comments.

Your Committee finds that in the past two years, IDA's have been successful in assisting 214 individuals of low or moderate income to begin a savings program for a home or furthering their education. Of those individuals, 33 reached their savings goal so far. The passage of this bill may encourage private matching fund contributions from individuals and businesses. These additional matching funds may leverage more federal funds and enable more families and individuals to benefit from this program.

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. 336 and recommends that it pass Second Reading and be referred to the Committee on Finance.