STAND. COM. REP. NO. 3298

Honolulu, Hawaii

RE:    H.B. No. 1702

       H.D. 1

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B. No. 1702, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose and intent of this measure is to amend the household and dependent care services income tax credit for certain resident taxpayers by changing the basis for the applicable percentage of the credit.

     Your Committee received testimony in support of this measure from Catholic Charities Hawaii, Hawaii Appleseed Center for Law & Economic Justice, and PHOCUSED.

     Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

     Your Committee finds that this measure provides a means to increase the income tax credit for expenses for household and dependent care services necessary for gainful employment.

     Your Committee has amended this measure by reinserting the applicable percentages for determining the tax credit from the original draft of the measure.  These amendments would provide a tax credit ranging from fifteen to twenty-five per cent of the employment-related expenses paid by a qualifying resident taxpayer.

     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 H.B. No. 1702, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1702, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.

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

________________________________

JILL N. TOKUDA, Chair