STAND. COM. REP. NO. 2442

Honolulu, Hawaii

RE: S.B. No. 2283

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Human Services, to which was referred S.B. No. 2283 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 child-care expense refundable tax credit that is equal to an unspecified percent of the amount the taxpayer spent on eligible child-care expenses during that taxable year.

Your Committee received testimony in support of this measure from the Early Childhood Action Strategy and one individual. Your Committee received comments on this measure from the Department of Taxation, Office of the Auditor, Hawaii Children's Action Network, and Tax Foundation of Hawaii.

Your Committee finds that the cost of raising a child in Hawaii is much higher than the national average due to the cost of child care in Hawaii and because, when adjusted for cost of living, wages in Hawaii are amongst the lowest in the nation. Your Committee further finds that the federal child tax credit enacted twenty years ago has been shown to be an effective tool to address poverty and assist lower income families and that a similar state tax credit would provide valuable financial relief for local families.

As affirmed by the record of votes of the members of your Committee on Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2283 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 Human Services,

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RUSSELL E. RUDERMAN, Chair