STAND. COM. REP. NO.  22

Honolulu, Hawaii

                , 2015

RE:   H.B. No. 18

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Human Services, to which was referred H.B. No. 18 entitled:

"A BILL FOR AN ACT RELATING TO LONG-TERM CARE,"

begs leave to report as follows:

The purpose of this measure is to establish a long-term care income tax credit for qualified taxpayers for the cost of long-term care insurance premium payments.

The International Longshore and Warehouse Union Local 142 and the American Council of Life Insurers supported this measure. The Department of Taxation and the Tax Foundation of Hawaii submitted comments.

Your Committee has amended this measure by:

     (1)  Clarifying that the long-term care tax credit is a nonrefundable tax credit;

     (2)  Changing the effective date of the tax credit to July 1, 2050, to promote further discussion; and

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

     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 H.B. No. 18, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 18, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Human Services,

____________________________

DEE MORIKAWA, Chair