Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Higher Education, to which was referred H.B. No. 238 entitled:

begs leave to report as follows:

The purpose of this bill is to create an income tax credit to repay student loans for students who practice in medically underserved areas in the State.

The John A. Burns School of Medicine at the University of Hawaii, and Hawaii Healthcare Association testified in support of this bill. The Department of Taxation testified in support of the bill's intent. The Tax Foundation of Hawaii provided comments on the bill.

Your Committee finds that this bill addresses the severe shortage of medical services in underserved areas of the State by providing tax incentives to doctors to encourage more physicians to practice medicine in areas of our state lacking adequate medical coverage.

Your Committee has amended this bill by making it applicable to taxable years beginning after December 31, 2020, to encourage further discussion on the measure.

As affirmed by the record of votes of the members of your Committee on Higher Education that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 238, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as H.B. No. 238, H.D. 1.