Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs, and Government Operations, to which was referred S.B. No. 2364 entitled:

begs leave to report as follows:

The purpose of this measure is to increase the allowable income tax deduction for national guard members and reservists who are called up to active duty.

Testimony in support of this measure was received from the Hawaii Department of Defense, Chamber of Commerce of Hawaii, and one individual. Testimony in opposition was received from the Department of Taxation. Comments were received from the Tax Foundation of Hawaii.

The amount of the increase is from $1,750 to $5,000. This measure would serve to increase the recruitment incentive, recognize our fighting men and women for their dedication and patriotism, and make a modest increase in their income. Your Committee finds that any revenue loss to the State is insignificant compared to the immeasurable and intangible rewards of this measure to our troops.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs, and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2364 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.