Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

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

begs leave to report as follows:

The purpose of this measure is to provide that the individual development account contribution tax credit shall be equal to 100% of the amount contributed.

Your Committee heard testimony in opposition to the measure from the Department of Taxation and Department of Budget and Finance. Technical comments were provided by the Tax Foundation of Hawaii.

Your Committee finds that individual development accounts are an effective means of fostering savings for education, home ownership, and business creation.

Your Committee has amended the measure by changing the effective date to January 1, 2003.

As affirmed by the record of votes of the members of your Committee on Health and Human Services that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 336, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 336, S.D. 1, and be referred to the Committee on Ways and Means.