STAND. COM. REP. NO.203-02
RE: H.B. No. 2380
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Your Committee on Human Services and Housing, to which was referred H.B. No. 2380 entitled:
"A BILL FOR AN ACT RELATING TO TAX CREDITS,"
begs leave to report as follows:
The purpose of this bill is to address the anticipated cutback in social services funding by providing an income tax credit for cash contributions made to qualified nonprofit agencies that provide direct services to the public.
Blueprint for Change testified in support of this bill. The Department of Taxation (DOTAX) and the Department of Budget and Finance (BNF) testified in opposition to this measure. The Tax Foundation of Hawaii submitted comments on this measure.
Nonprofit agencies expend large amounts of time in seeking funding for their operational costs. This is a necessity if these agencies are to maintain and sustain programs that provide much-needed services to the poor, disabled, elderly, and vulnerable. Providing this tax credit will greatly assist these agencies in their fundraising efforts, especially in the aftermath of the terrorist attacks of September 11, 2001, which severely stretched these agencies' resources.
Although your Committee understands the concerns of BNF and DOTAX, this is an important matter which warrants further review and discussion. Accordingly, your Committee has amended this bill by changing the date of applicability to December 31, 2020.
Technical, nonsubstantive amendments were also made for the purpose of style.
As affirmed by the record of votes of the members of your Committee on Human Services and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2380, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2380, H.D. 1, and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Human Services and Housing,
MICHAEL P. KAHIKINA, Chair