STAND. COM. REP. NO.  139

Honolulu, Hawaii

                , 2013

RE:   H.B. No. 569

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Education, to which was referred H.B. No. 569 entitled:

"A BILL FOR AN ACT RELATING TO A TAX CREDIT FOR AFTER-SCHOOL PROGRAMS,"

begs leave to report as follows:

The purpose of this measure is to encourage the development and operation of after-school programs by establishing a tax credit against the state corporation income tax for corporations that sponsor an after-school program in conjunction with a public school.

The Department of Taxation and Tax Foundation of Hawaii provided comments.

     Your Committee believes that the tax credit established by this bill may encourage the development of additional programs to provide enrichment activities for Hawaii's keiki and is a worthy idea for discussion and deliberation.  However, your Committee acknowledges that concerns raised by the Department of Taxation merit serious consideration.  As such issues fall outside the Committee on Education's jurisdiction, your Committee respectfully requests the Committee on Finance to examine these concerns should this measure move forward.

     As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 569 and recommends that it pass Second Reading and be referred to the Committee on Finance.

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

____________________________

ROY M. TAKUMI, Chair