STAND. COM. REP. NO. 133

Honolulu, Hawaii

RE:    S.B. No. 197

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Human Services, to which was referred S.B. No. 197 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this measure is to provide a refundable income tax credit to caregivers of qualified care recipients including persons with disabilities and persons sixty years of age and older.

     The tax credit would be provided on a sliding scale ranging from ten to one hundred per cent of an unspecified maximum monetary amount, depending on the taxpayer's adjusted gross income.

     Testimony in support of this measure was submitted by the Kokua Council, ILWU Local 142, and one individual.  The Department of Taxation submitted testimony in opposition to the measure.  The Tax Foundation of Hawaii submitted comments.  Copies of written testimony are available for review on the Legislature's website.

     Your Committee finds that caregivers provide necessary services to family members and friends in need.  In so doing, caregivers not only benefit their care recipients by allowing them to avoid or delay institutionalization, but also decrease the burden on Hawaii's chronically scarce long-term care beds, nursing care facilities, and residential care homes.

     Your Committee further finds that the benefits derived by care recipients and the State come at a price to caregivers, who frequently make financial sacrifices in order to provide such care, working fewer hours and losing benefits in their attempt to balance their caregiving and employment responsibilities.  Your Committee finds that providing a refundable tax credit for caregivers providing care to qualified care recipients will ease the financial burdens caregivers bear and recognize the statewide benefits provided by caregivers.

     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 S.B. No. 197 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

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

____________________________

SUZANNE CHUN OAKLAND, Chair