STAND. COM. REP. NO. 894

Honolulu, Hawaii

RE: S.B. No. 76

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 76, S.D. 1, 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 non-refundable income tax credit for the purchase of a personal emergency response system.

Your Committee received testimony in support of this measure from the Oahu County Committee on Legislative Priorities of the Democratic Party of Hawaii.

Your Committee received comments on this measure from the Department of Taxation and the Tax Foundation of Hawaii.

Your Committee finds that this measure establishes an income tax credit to assist Hawaii residents in the purchase of a personal emergency response system, which is an alarm system designed to permit the user to signal the occurrence of a medical or personal emergency to alert a provider.

Your Committee has amended this measure by:

(1) Clarifying that a taxpayer's federal adjusted gross income shall be used to determine eligibility for the tax credit;

(2) Clarifying income requirements for eligibility to claim the tax credit, based on taxpayers' filing status;

(3) Requiring the Department of Health to certify tax credit amounts;

(4) Making the tax credit applicable to taxable years beginning after December 31, 2019;

(5) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(6) Making technical nonsubstantive amendments for purposes of consistency, clarity, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 76, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 76, S.D. 2, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair