Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Education and Military Affairs, to which was referred S.B. No. 1837 entitled:

begs leave to report as follows:

The purpose of this measure is to establish an income tax credit for employers that hire National Guard members.

Testimony in favor of the measure was submitted by the Department of Defense, Hawaii National Guard Enlisted Association, The Chamber of Commerce of Hawaii, and an individual. The Department of Taxation submitted comments.

Your Committee finds that many Hawaii residents who are National Guard members are continually being called to active military duty. These tours of duty may last up to eighteen months. The incentive in this measure will not only encourage employers to hire but continue the employment of their employees who are members of the Hawaii National Guard.

Upon further consideration, your Committee has amended this measure to:

As affirmed by the record of votes of the members of your Committee on Education and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1837, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1837, S.D. 1, and be referred to the Committee on Ways and Means.