Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Human Services, to which was referred H.B. No. 802 entitled:

begs leave to report as follows:

The purpose of this bill is to increase the Individual Development Account (IDA) Contribution Tax Credit from 50 percent to 100 percent of the contributed amount.

The Department of Taxation and Tax Foundation of Hawaii offered comments.

Your Committee recognizes that IDAs have helped many individuals become first-time homeowners and business-owners, and have also helped some individuals seek further education. Your Committee believes this measure will encourage more individuals, businesses, and organizations to contribute funds to IDAs.

As affirmed by the record of votes of the members of your Committee on Human Services that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 802 and recommends that it pass Second Reading and be referred to the Committee on Finance.