STAND. COM. REP. 2461

Honolulu, Hawaii

, 2004

RE: S.B. No. 2573

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Health and Human Services, to which was referred S.B. No. 2573 entitled:

"A BILL FOR AN ACT RELATING TO CAREGIVER TAX CREDIT,"

beg leave to report as follows:

The purpose of this measure is to establish a caregiver tax credit to a provider of long-term care to an eligible care recipient.

Testimony in support of this measure was received from an individual. Testimony in opposition was received from the Department of Taxation. Comments were received from the Executive Office on Aging.

Your Committees find that families providing long-term care for their loved ones within their homes, instead of placing their loved ones in costly institutional care, takes an emotional as well as a financial toll on the caregivers. Incentives need to be provided for these caregivers to be able to continue providing long-term care for their loved ones.

Your Committees have amended this measure by:

(1) Decreasing the tax credit to $500;

(2) Establishing that to claim this tax credit, eligible caregivers cannot derive income from the provision of these services to anyone;

(3) Requiring that the caregiver provide the long-term care without compensation;

(4) Imposing criminal penalties on individuals providing fraudulent tax status; and

(5) Repealing the measure after five years.

As affirmed by the records of votes of the members of your Committees on Health and Human Services that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2573, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2573, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Health and Human Services,

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SUZANNE CHUN OAKLAND, Chair

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ROSALYN H. BAKER, Chair