Honorable CALVIN K.Y. SAY

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Public Safety and Military Affairs, to which was referred H.B. No. 329 entitled:

begs leave to report as follows:

The purpose of this bill is to support our military families by establishing a Military Dependent Tax Credit (Tax Credit) for qualifying members of the military with qualifying dependents.

The Honolulu Fire Department, The Chamber of Commerce of Hawaii, and a concerned individual testified in support of this bill. The state Department of Defense, Department of Taxation, and Tax Foundation of Hawaii submitted comments.

A member of your Committee requested that an inquiry be made regarding whether Hawaii residents serving on active duty would also be eligible to receive 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. 329 and recommends that it pass Second Reading and be referred to the Committee on Finance.