STAND. COM. REP. NO.  630

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1096

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Human Services & Housing, to which was referred H.B. No. 1096 entitled:

"A BILL FOR AN ACT RELATING TO STATE MORTGAGE CREDIT CERTIFICATES,"

begs leave to report as follows:

     The purpose of this bill is to assist low- and moderate-income first-time homebuyers by providing qualified homebuyers, through a state mortgage credit certificate program, with an income tax credit of up to 20 percent but not to exceed $2,000 of the annual mortgage interest payment.

     The Hawaii Association of REALTORS and UniDev Hawaii, LLC testified in support of this bill.  The Department of Taxation (DOTAX) opposed this measure.  The Tax Foundation of Hawaii provided comments.

     Your Committee respectfully requests the Committee on Finance to look at the concerns of DOTAX.

     As affirmed by the record of votes of the members of your Committee on Human Services & Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1096 and recommends that it pass Second Reading and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Human Services & Housing,

____________________________

MAILE SHIMABUKURO, Chair