Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Public Safety and Military Affairs, to which was referred H.B. No. 1903 entitled:

begs leave to report as follows:

The purpose of this bill is to support employers who hire members of the Hawaii National Guard by providing to these employers a tax credit (Tax Credit) equal to five percent of the National Guard member's salary or wages during the taxable year; provided that the Tax Credit is capped at $1,000 per year per employee.

The state Department of Defense, the Chamber of Commerce of Hawaii, and a concerned citizen supported this bill. The Department of Taxation and Tax Foundation of Hawaii submitted comments.

Your Committee has amended this measure by also allowing employers who hire members of the reserves of the armed forces of the United States to qualify for the Tax Credit.

As affirmed by the record of votes of the members of your Committee on Public Safety and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1903, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1903, H.D. 1, and be referred to the Committee on Finance.