Bill Text: HI HB2596 | 2010 | Regular Session | Amended

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Bill Title: Income Tax Credits; Ordering of Credit Claims

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2010-04-14 - (S) Act 021, 4/14/2010 (Gov. Msg. No. 477). [HB2596 Detail]

Download: Hawaii-2010-HB2596-Amended.html

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STAND. COM. REP. NO. 2895

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 2596

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 2596 entitled:

 

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

 

begs leave to report as follows:

 

     The purpose of this measure is to clarify the priority of income tax credit claims by requiring individuals who have no income tax liability to claim refundable tax credits prior to claiming non-refundable tax credits.

 

     Testimony in support of this measure was submitted by the Department of Taxation.  The Tax Foundation of Hawaii submitted comments.  Written testimony may be reviewed on the Legislature's website.

 

     Your Committee finds that there is no statutory framework for claiming income tax credits with respect to refundable and non-refundable tax credits.  Establishing a priority by which tax credits must be claimed will save the State an estimated $17,000,000 for at least two years.  Your Committee believes that this measure will create certainty for budgeting the State's tax credit liabilities and provide a savings for the State.

 

     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 H.B. No. 2596, and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

 

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

 

		____________________________ DONNA MERCADO KIM, Chair