STAND. COM. REP. NO. 971-18

Honolulu, Hawaii

, 2018

RE: H.B. No. 2672

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 2672, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to help low-income renters afford housing by:

(1) Amending the definition of "adjusted gross income" to conform to the federal definition of adjusted gross income to increase accuracy in measuring a taxpayer's income and eligibility for the low-income household renters' income tax credit; and

(2) Expanding eligibility for and increasing the amount of the low-income household renters' income tax credit based upon adjusted gross income and filing status.

The Office of Hawaiian Affairs, PHOCUSED, Catholic Charities Hawai‘i, Young Progressives Demanding Action - Hawai‘i, Hawai‘i State Democratic Women's Caucus, Parents And Children Together, Hawaiian Community Assets, Oahu County Committee on Legislative Priorities of the Democratic Party of Hawaii, Americans for Democratic Action, Hawai‘i Alliance for Progressive Action, YWCA O‘ahu, and several concerned individuals supported this measure. The Department of Taxation, Tax Foundation of Hawaii, IMUAlliance, Hawai‘i Appleseed Center for Law & Economic Justice, League of Women Voters of Hawaii, and Pono Hawai‘i Initiative provided comments.

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 H.B. No. 2672, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

SYLVIA LUKE, Chair