STAND. COM. REP. NO.  1637-16

Honolulu, Hawaii

                , 2016

RE:   S.B. No. 2624

      S.D. 2

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 2624, 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 create an income tax credit, not to exceed $250 per year, for public and private school teachers, librarians, and counselors for grades prekindergarten through twelve who incur certain expenses for materials used in the classroom and accompanying students for educational travel.

The Hawaii State Teachers Association and IMUAlliance supported this measure.  The Department of Education, Department of Taxation, and Tax Foundation of Hawaii provided comments.

     Your Committee has amended this measure by:

     (1)  Changing the maximum amount of the allowable tax credit to an unspecified amount;

     (2)  Changing its effective date to July 1, 2030, to encourage 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 Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2624, S.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2624, S.D. 2, H.D. 1.

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

____________________________

SYLVIA LUKE, Chair