Honolulu, Hawaii



RE:    S.B. No. 1014

       S.D. 1




Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii




     Your Committee on Ways and Means, to which was referred S.B. No. 1014 entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to address recent increases in the cost of household and dependent care services.


     Specifically, this measure amends the income tax credit that may be claimed for certain expenses for household and dependent care services that are necessary for gainful employment by:


     (1)  Increasing the taxpayer's applicable percentage of the employment-related expenses and dollar limit on amounts creditable that constitute the tax credit; and


     (2)  Requiring the Department of Taxation from September 30, 2020, and each September 30th thereafter, to make annual adjustments for inflation to the adjusted gross income thresholds and dollar limits on amounts creditable.


     Your Committee received testimony in support of this measure from the Executive Office on Early Learning, Oahu County Committee on Legislative Priorities of the Democratic Party of Hawaii, Collaborative Support Services Inc., Hawaii Appleseed Center for Law & Economic Justice, Midwives Alliance of Hawaii, Hawaii Alliance for Progressive Action, and three individuals.


     Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.


     Your Committee finds that this measure will assist families with young children in the State to access high-quality early learning options.


     Your Committee has amended this measure by:


     (1)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and


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


     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1014, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1014, S.D. 1, and be placed on the calendar for Third Reading.



Respectfully submitted on behalf of the members of the Committee on Ways and Means,