STAND. COM. REP. NO. 2013

Honolulu, Hawaii

RE: S.B. No. 2544

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Higher Education, to which was referred S.B. No. 2544 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose and intent of this measure is to establish a college savings program income tax credit.

Your Committee received testimony in support of this measure from the Ocean Tourism Coalition, Quicksilver Charters, and one individual. Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that Hawaii's college savings program is codified as chapter 256, Hawaii Revised Statutes, and that this measure is intended to create an incentive for taxpayers to invest in the college savings program. Your Committee notes that other jurisdictions allow contributions to a college savings program to be used as a tax deduction.

Your Committee has amended this measure by clarifying that the tax credit limit of $500 for each contribution applies to each designated beneficiary without limitation on the total amount that may be claimed by a taxpayer.

As affirmed by the record of votes of the members of your Committee on Higher Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2544, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2544, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________

KAIALI'I KAHELE, Chair