STAND. COM. REP. NO.  994

Honolulu, Hawaii

                , 2013

RE:   S.B. No. 573

      S.D. 2

      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 Education, to which was referred S.B. No. 573, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to assist school teachers, special education teachers, school librarians, and counselors by establishing a tax credit for specified expenses paid or incurred by such individuals for supplementary materials acquired for use in the classroom.

The Hawaii State Teachers Association and several concerned individuals supported this measure.  IMUA Alliance supported this measure with amendments.  A concerned individual opposed this measure.  The Department of Taxation, Tax Foundation of Hawaii, and three concerned individuals provided comments.

     Your Committee has amended this measure by:

     (1)  Clarifying that the unspecified cap on the amount of the tax credit is a cap on the amount that may be claimed per taxable year; 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 Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 573, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 573, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

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

____________________________

ROY M. TAKUMI, Chair