Honolulu, Hawaii

                , 2021


RE:   H.B. No. 131

      H.D. 1





Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii




     Your Committee on Housing, to which was referred H.B. No. 131 entitled:




begs leave to report as follows:


     The purpose of this measure is to:


     (1)  Increase the tax credit for low-income individuals and household renters;


     (2)  Increase the adjusted gross income eligibility cap for the income tax credit for low-income household renters using tax brackets for individuals and different categories of households; and


     (3)  Provide for annual increases based on the Consumer Price Index.


     Your Committee received testimony in support of this measure from Imua Alliance, Hawaii Appleseed Center for Law & Economic Justice, and League of Women Voters of Hawaii.  Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.


     Your Committee finds that the income tax credit for low-income household renters last increased in 1981, from $20 per exemption to $50 per exemption.  This measure adjusts the eligibility requirements under the income tax credit for low-income household renters and increases the amount of the tax credit to provide help to individuals and families needing rental assistance.


     Your Committee has amended this measure by:


     (1)  Using the federal adjusted gross income as the threshold determinant for income tax credit eligibility;


     (2)  Setting the inflation increase for the income tax credit to occur every three years, rather than annually;


     (3)  Changing the effective date to July 1, 2050, to encourage further discussion; and


     (4)  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 Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 131, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 131, H.D. 1, and be referred to your Committee on Finance.



Respectfully submitted on behalf of the members of the Committee on Housing,