STAND. COM. REP. NO. 2030

Honolulu, Hawaii

RE:    S.B. No. 2317

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Human Services, 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 establish three new tax credits for caregivers:

     (1)  A small business caregiver leave tax credit for a percentage of the payroll cost to a small business employer providing an employee with leave to serve as a caregiver;

     (2)  A caregiver tax credit for the cost of providing care to a qualified care recipient; and

     (3)  A caregiver educational cost tax credit for qualified educational costs of caregiver courses or programs.

     Your Committee received testimony in support of this measure from the Healthcare Association of Hawaii; ILWU Local 142; and the Policy Advisory Board of Elder Affairs.  Your Committee received comments on this measure from the Department of Taxation and the Tax Foundation of Hawaii.

     Your Committee finds that studies have shown that family caregivers incur significant financial costs, affecting their standard of living and future financial security.  Tax credits would help mitigate the financial burden - the small business caregiver leave tax credit would reduce the financial burden on small business employers, making it viable for small business owners to allow their employees to provide needed care; the caregiver tax credits ease the financial burden of people who provide care for others, including relatives and people with certain disabilities; and the caregiver educational cost tax credit would make it possible for more caregivers to take advantage of the caregiving training courses or programs available in our community.

     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. 2317 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