STAND. COM. REP. NO.  1128-16

Honolulu, Hawaii

                , 2016

RE:   S.B. No. 2624

      S.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Education, 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 support the work of Hawaii's educators by creating an income tax credit -- not to exceed $250 per year -- for public and private school teachers, librarians, and counselors who instruct students in any grade between prekindergarten and twelfth grade and who incur certain expenses, such as for books, computer equipment and software, supplementary materials used in the classroom, and educational travel expenses.

The Department of Education, Hawaii State Teachers Association, and IMUAlliance supported this measure.  The Hawaii Government Employees Association supported the intent of the measure.  The Department of Taxation and Tax Foundation of Hawaii submitted comments.

     Your Committee respectfully requests your Committee on Finance, should it choose to advance this measure, to consider the Department of Taxation's testimony regarding the definition of "certain expenses".

     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. 2624, S.D. 2, and recommends that it pass Second Reading and be referred to your Committee on Finance.

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

____________________________

ROY M. TAKUMI, Chair