STAND. COM. REP. 851
Honolulu, Hawaii
, 2003
RE: H.B. No. 90
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Second State Legislature
Regular Session of 2003
State of Hawaii
Sir:
Your Committee on Finance, to which was referred H.B. No. 90 entitled:
"A BILL FOR AN ACT RELATING TO LONG-TERM CARE,"
begs leave to report as follows:
The purpose of this bill is to encourage the general public to purchase long-term care insurance by establishing a refundable long-term care tax credit of the lesser of $2,500 or 50 percent of the cost of long-term care insurance premiums.
The Chamber of Commerce of Hawaii, Healthcare Association of Hawaii, American Council of Life Insurers, NAIFA Hawaii, and Health Insurance Association of America testified in support of this measure. The Department of Taxation supported the intent of this measure. The Hawaii State Teachers Association, Coalition for Affordable Long Term Care, and Kokua Council opposed this measure. The Tax Foundation of Hawaii provided comments.
Your Committee has amended this bill by:
(1) Deleting the provisions for a refundable tax credit and inserting provisions that an excess credit may be used against income tax liability in subsequent years until the excess credit is exhausted;
(2) Inserting a provision that the tax credit may only be claimed upon declaration of the Governor when general fund tax collections at the close of each of two successive fiscal years exceed 7.5% of the general fund tax collections for each of the prior two fiscal years; and
(3) Making technical, nonsubstantive amendments for purposes of clarity, consistency, and style.
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. 90, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 90, H.D. 1.
Respectfully submitted on behalf of the members of the Committee on Finance,
____________________________ DWIGHT Y. TAKAMINE, Chair |
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