STAND. COM. REP. NO. 829

Honolulu, Hawaii

RE: S.B. No. 826

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 826 entitled:

"A BILL FOR AN ACT RELATING TO THE LOW-INCOME HOUSING TAX CREDIT,"

begs leave to report as follows:

The purpose and intent of this measure is to amend the Low-Income Housing Tax Credit.

More specifically, this measure clarifies that the School Facilities Authority is not eligible as a housing developer for purposes of the Low-Income Housing Tax Credit.

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

Your Committee finds that the Low-Income Housing Tax Credit program subsidizes the acquisition, construction, and rehabilitation of affordable rental housing for low- and moderate-income tenants. Your Committee further finds that this measure will clarify which entities are eligible as housing developers for purposes of the Low-Income Housing Tax Credit.

Your Committee has amended this measure by:

(1) Clarifying that all departments and agencies of the State are not eligible as a housing developer for purposes of the Low-Income Housing Tax Credit;

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

(3) Specifying the taxable years to which the measure shall apply.

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. 826, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 826, S.D. 1.

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

________________________________

DONOVAN M. DELA CRUZ, Chair