STAND. COM. REP. NO. 1129

Honolulu, Hawaii

, 2005

RE: H.B. No. 329

H.D. 1

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Education and Military Affairs, to which was referred H.B. No. 329, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAX CREDITS,"

begs leave to report as follows:

The purpose of this measure is to provide a tax credit to members of the Hawaii National Guard and U.S. Army, Navy, Air Force, Marine Corps, and Coast Guard Reserves with qualifying dependents.

Testimony in support of the measure was submitted by the State Department of Defense, Hawaii National Guard Enlisted Association, The Chamber of Commerce of Hawaii, and an individual. Comments were submitted by the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that the increased reliance on recalling reservists to active duty has placed heavy demands on state national guard and reserve forces and is expected to lead to serious challenges in recruiting and retention. It takes exceptional, dedicated, and ambitious individuals to take on the responsibility of reserve obligations along with maintaining a full-time career. However, there is a growing struggle each year to meet military retention goals in support of the defense of the nation.

This measure recognizes that members of the national guard and reserves confront many obstacles not faced by other residents and provides for some compensating relief for those serving with the State's military. Your Committee has amended this measure by inserting a tax credit amount of $100.

As affirmed by the record of votes of the members of your Committee on Education and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 329, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 329, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________

NORMAN SAKAMOTO, Chair