STAND. COM. REP. NO. 2765

Honolulu, Hawaii

RE:    S.B. No. 2317

       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. 2317 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose and intent of this measure is to provide support for caregivers of older adults and the disabled by establishing the following tax credits:

     (1)  A small business caregiver leave tax credit;

     (2)  A caregiver tax credit; and

     (3)  A caregiver educational costs tax credit.

     Written comments on this measure were submitted by the Tax Foundation of Hawaii.

     Your Committee finds that, according to a report prepared by the Executive Office on Aging, by the year 2020, persons who are sixty years of age and older will constitute nearly one-third of Hawaii's adult population, and over one-third of those persons are expected to have functional disabilities.  Your Committee believes that providing support for caregivers of the elderly population is critically important if individuals and families are to meet the multi-faceted needs of older adults and those with disabilities.  Your Committee further finds that the tax credits established by this measure will assist family caregivers by mitigating the financial burden of caring for older adults and those with disabilities.

     Your Committee has amended this measure by:

     (1)  Clarifying the language relating to tax credit caps on the small business caregiver leave tax credit and the caregiver educational costs tax credit;

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

     (3)  Making technical nonsubstantive amendments for the purposes of clarity 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. 2317, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2317, S.D. 1.

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

____________________________

DAVID Y. IGE, Chair