STAND. COM. REP. NO. 986

Honolulu, Hawaii

, 2025

RE: H.B. No. 796

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Finance, to which was referred H.B. No. 796, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAX CREDITS,"

begs leave to report as follows:

The purpose of this measure is to require income tax credits established or renewed after December 31, 2025, to include a five-year sunset or a gradual reduction over a three-year period, beginning with the sixth year of the credit.

Your Committee received testimony in opposition to this measure from the Honolulu Film Office of the City and County of Honolulu; Catholic Charities Hawaiʻi; Hawaiʻi Children's Action Network Speaks!; SAG-AFTRA Hawaii Local; Democratic Party of Hawaiʻi Education Caucus; Coalition Earth; IATSE Local 665; Democratic Party of Hawaiʻi Labor Caucus; Pride at Work – Hawaiʻi; Hawaiʻi Ironworkers Stabilization Fund; and numerous individuals. Your Committee received comments on this measure from the Department of Taxation; Department of Business, Economic Development, and Tourism; Tax Foundation of Hawaii; and one individual.

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. 796, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

KYLE T. YAMASHITA, Chair