STAND. COM. REP. NO. 1416

Honolulu, Hawaii

, 2019

RE: S.B. No. 885

S.D. 1

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.B. No. 885, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE LOW-INCOME HOUSEHOLD RENTERS CREDIT,"

begs leave to report as follows:

The purpose of this measure is to increase the income ceiling and the amount of the income tax credit for low-income household renters.

The Americans for Democratic Action, LGBT Caucus of the Democratic Party of Hawaii, Catholic Charities of Hawai‘i, and O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i submitted testimony in support of this measure. The Department of Taxation, Tax Foundation of Hawaii, IMUAlliance, Hawaii Appleseed Center for Law & Economic Justice, and League of Women Voters of Hawaii submitted comments on this measure.

Your Committee has amended this measure by:

(1) Providing income threshold tiers for the tax credit, based on filing status, to prevent a sharp drop in the credit when households exceed income eligibility limits; and

(2) Making technical, nonsubstantive amendments for clarity, consistency, and style.

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. 885, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 885, S.D. 1, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

TOM BROWER, Chair