STAND. COM. REP. NO. 499

Honolulu, Hawaii

RE:    S.B. No. 1169

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Housing, to which was referred S.B. No. 1169 entitled:

"A BILL FOR AN ACT RELATING TO THE LOW-INCOME HOUSING TAX CREDIT,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Specify that certain provisions of the Internal Revenue Code related to at-risk rules and deductions and to passive activity loss do not apply with respect to claims for the state low-income housing tax credit; and

     (2)  Appropriate funds to establish one position in the Hawaii Housing Finance and Development Corporation to oversee the low-income housing tax credit program.

     Your Committee received testimony in support of this measure from InState Partners and two individuals.  Your Committee received comments on this measure from the Hawaii Housing Finance and Development Corporation, Department of Taxation, and Tax Foundation of Hawaii.

     Your Committee finds that increasing access to affordable housing in Hawaii is a priority for the State.  Your Committee further finds that current limitations on low-income housing tax credits exclude many individuals and small businesses from participation.  This measure will encourage investment in affordable housing development projects by expanding the pool of investors that may qualify for low-income housing tax credits.

     As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1169 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

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

________________________________

WILL ESPERO, Chair