Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Education, to which was referred S.B. No. 520 entitled:

begs leave to report as follows:

The purpose of this measure is to provide an income tax credit to teachers based on experience.

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

Your Committee finds that tax credits for teachers could be an effective component of a comprehensive effort to recruit and retain quality teachers that also examines other financial benefits, adequate compensation, and job satisfaction. Your Committee is moving the measure along to further discussion on this important issue.

As affirmed by the record of votes of the members of your Committee that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 520 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.