Exempts the general excise tax from the credit earned by a homeowner who sells electrical power back to a utility company.

A BILL FOR AN ACT

SECTION 1. Section 237-13.5, Hawaii Revised Statutes, is amended to read as follows:

"§237-13.5 Assessment on generated electricity. Any [other provision of the] law to the contrary notwithstanding, the levy and assessment of the general excise tax on the gross proceeds from the sale of electric power to a public utility company for resale to the public[,] shall be made only as a tax on the business of a producer, at the rate assessed producers, under section 237-13(2)(A)[.]; provided that a producer shall not include residential homeowners who are credited for electrical power sold back to a utility company."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2005.