STAND. COM. REP. NO. 2719

Honolulu, Hawaii

RE:    S.B. No. 2179

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 2179 entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to require the Department of Taxation to coordinate an outreach initiative to raise awareness of the federal earned income tax credit among eligible taxpayers.  This measure also makes an unspecified appropriation for this purpose.  

     Written comments in support of this measure were submitted by the Office of Hawaiian Affairs.  Written comments were submitted by the Department of Human Services and Tax Foundation of Hawaii.

     Your Committee finds that the federal earned income tax credit is a means for low income families to reduce their tax liability and, in many cases, receive a refund.  Your Committee finds that over one hundred thousand families in Hawaii claim the federal earned income tax credit; however, the tax credit goes unclaimed by thousands of additional families who may be eligible to benefit from it.  Your Committee finds that a program to raise awareness in Hawaii of the federal earned income tax credit may assist more families in claiming the credit and allow them to retain more of their income to use for food, housing, and other necessities.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to July 1, 2050, to encourage further discussion on the measure; and

     (2)  Making technical nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2179, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2179, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair