STAND. COM. REP. NO.  506-10

Honolulu, Hawaii

                , 2010

RE:   H.B. No. 2596

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2596 entitled:

"A BILL FOR AN ACT RELATING TO TAX CREDITS,"

begs leave to report as follows:

     The purpose of this bill is to enhance general revenues and increase certainty in budgeting by specifying that refundable tax credits be applied before nonrefundable tax credits to a taxpayer's income tax liability.

     The Department of Taxation testified in support of this bill.  The Tax Foundation of Hawaii offered comments.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2596 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair