STAND. COM. REP. NO.136-02
RE: H.B. No. 2666
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. 2666 entitled:
"A BILL FOR AN ACT RELATING TO INDIVIDUAL DEVELOPMENT ACCOUNT CONTRIBUTION TAX CREDIT,"
begs leave to report as follows:
The purpose of this bill is to encourage private individuals, organizations, and businesses to match contributions to individual development accounts (IDA) by increasing the amount of the income tax credit from 50 percent of the contributions to the full contribution made to IDA.
The Tax Foundation of Hawaii offered comments, and the Department of Taxation opposed this measure.
IDA is a special savings account program designed to provide individuals and families, especially low-income persons, with an opportunity to accumulate assets. Contributions made by individuals and families to IDA are matched on a dollar-for-dollar basis by private individuals, organizations, and businesses. To encourage these entities to match contributions, the law provides an incentive in the form of a tax credit equal to 50 percent of the amount contributed as matching funds.
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. 2666 and recommends that it pass Second Reading 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