STAND. COM. REP. NO. 414

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1081

       S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

 

Sir:

 

     Your Committee on Higher Education, to which was referred S.B. No. 1081 entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to provide a state income tax deduction of up to $5,000 per year for student loan interest paid on qualified educational loans.

 

     Your Committee received testimony in support of this measure from three individuals.  Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

 

     Your Committee finds that the costs associated with postsecondary education often forces students to go into debt.  Student debt has increasingly become a burden on individuals and families.  This measure will encourage Hawaii residents to pursue postsecondary education by establishing an income tax deduction for qualifying student loan interest payments.  Your Committee further finds that the State already offers deductions for student loan interest, and notes that the income tax deduction provided in this measure will be in addition to existing deductions.

 

     Your Committee has amended this measure by:

 

     (1)  Adding language clarifying that the income tax deduction in this measure is in addition to any other deduction provided by chapter 235, Hawaii Revised Statutes;

 

     (2)  Inserting an effective date of May 12, 2059, to encourage further discussion; and

 

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Higher Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1081, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1081, S.D. 1, and be referred to your Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Higher Education,

 

 

 

________________________________

KAIALI'I KAHELE, Chair