Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 2109, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to encourage residents to purchase long-term care insurance by providing a tax credit to resident taxpayers for long-term care insurance premiums for the lesser of:

(1) $2,500;

The Hawaii Long Term Care Association, Chamber of Commerce of Hawaii, Healthcare Association of Hawaii, Hawaii Medical Association, and American Council of Life Insurers supported this bill. The Department of Taxation, Executive Office on Aging, and NAIFA Hawaii supported the intent of this measure. The Tax Foundation of Hawaii commented.

Your Committee has amended this bill by changing the effective date to January 1, 2010, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2109, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2109, H.D. 2.