STAND. COM. REP. NO.  783

Honolulu, Hawaii

                , 2013

RE:   H.B. No. 1298

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1298 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to assist developmentally, intellectually, or physically disabled individuals in obtaining employment by providing an incentive for employers to hire these individuals.  Specifically, this measure establishes a nonrefundable income tax credit for employers that hire developmentally, intellectually, or physically disabled individuals that is equal to fifty percent of the individual's qualified wages for the first six months the individual is employed.  

Numerous individuals testified in support of this bill.  The Department of Taxation, Department of Health, State Council on Developmental Disabilities, and Tax Foundation of Hawaii provided comments.  

     Your Committee has amended this measure by:

     (1)  Changing its effective date to July 1, 2030, to encourage further discussion; and

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

     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. 1298, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1298, H.D. 1.

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

____________________________

SYLVIA LUKE, Chair