CONFERENCE COMMITTEE REP. NO. 114

Honolulu, Hawaii

                 , 2007

RE:    S.B. No. 148

       S.D. 2

       H.D. 1

       C.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam and Sir:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 148, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INCOME TAX CREDIT,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this bill is to satisfy the Hawaii State constitutional mandate requiring taxpayers to receive a tax credit or refund when the balance of the state general fund exceeds five percent of general revenues for each of two successive fiscal years.

     Your Committee on Conference has amended this bill by providing a graduated tax credit based on federal adjustable gross income to help low-income taxpayers.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 148, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 148, S.D. 2, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ MARCUS R. OSHIRO, Chair	____________________________ CAROL FUKUNAGA, Chair
	____________________________ ROSALYN H. BAKER, Co-Chair