STAND. COM. REP. NO. 31

Honolulu, Hawaii

, 2005

RE: H.B. No. 172

 

 

 

Honorable Calvin K. Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Public Safety and Military Affairs, to which was referred H.B. No. 172 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this bill is to provide to employers who hire active members of the Hawaii National Guard, an income tax credit equal to five percent of the employee's salary or wage costs in a taxable year, with a maximum credit of $1,000 per qualified employee in a taxable year.

The state Department of Defense, Honolulu Fire Department, Office of the Assistant Secretary of Defense - Hawaii Committee for Employer Support of the Guard and Reserve, and The Chamber of Commerce of Hawaii testified in support of this bill. The Department of Taxation (DOTAX) submitted comments.

Your Committee requested information from DOTAX regarding the impact this bill would have if the bill also applied to employers who hired or employed Hawaii-based military reservists. DOTAX was unable to answer the question at the hearing, but indicated that it would furnish your Committee with the requested information.

As affirmed by the record of votes of the members of your Committee on Public Safety and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 172 and recommends that it pass Second Reading and be referred to the Committee on Economic Development and Business Concerns.

Respectfully submitted on behalf of the members of the Committee on Public Safety and Military Affairs,

 

KEN ITO, Chair