Report Title:
Tax Credit; Energy Star Products
Description:
Provides a tax credit for the purchase of "Energy Star" designated and labeled products. (SD1)
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THE SENATE |
S.B. NO. |
2125 |
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TWENTY-THIRD LEGISLATURE, 2006 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to tax credits.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that energy costs are continuing to rise in the State of Hawaii. The legislature further finds that energy use contributes to negative environmental consequences, such as the emission of greenhouse gases. According to a report by the Pew Center for Global Climate Change, individual households are increasingly considered part of the problem as home energy use is responsible for about one-fifth of U.S. energy-related greenhouse emissions.
The legislature further finds that "Energy Star" products, such as energy-efficient appliances, will save Hawaii residents money and help to preserve the environment. Energy-efficient choices can save families about a third on their energy bills while significantly reducing greenhouse gas emissions. According to the Environmental Protection Agency and the Department of Energy, in 2004 alone, Americans, with the help of Energy Star products, saved enough energy to power twenty-four million homes and avoid greenhouse gas emissions equivalent to those from twenty million cars, all while saving approximately $10,000,000,00 in energy costs.
The purpose of this Act is to provide a $50 tax credit for the aggregate purchase of at least $300 in "Energy Star" products for residential or commercial use.
SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§235- Qualified energy conservation; income tax credit. (a) There shall be allowed to each taxpayer subject to the taxes imposed by this chapter a qualified income tax credit for the purchase of "Energy Star" products, which shall be available to reduce the taxpayer’s net income tax liability.
(b) In the case of a partnership, S corporation, estate, or trust, the tax credit is allowable for products placed into service by the entity. The cost upon which the tax credit is computed shall be determined at the entity level. Distribution and share of credit shall be determined by rules.
(c) The amount of the tax credit shall be $50 and may be claimed for the purchase of "Energy Star" products with an aggregate retail price of at least $300.
(d) If the tax credit claimed by the taxpayer under this section exceeds the amount of the tax credit of the income tax payments due, the excess of credit over-payments shall be refunded to the taxpayer; provided that the tax credit properly claimed by a taxpayer who has no income tax liability shall be paid to the taxpayer; and provided that no refunds or payments on account of the tax credit allowed by this section shall be made for amounts less than $1.
(e) The director of taxation shall prepare forms as may be necessary to claim a credit under this section. The director may also require the taxpayer to furnish information to ascertain the validity of the claim for credit made under this section.
(f) The department of taxation shall adopt rules pursuant to chapter 91 necessary for the purposes of this chapter.
(g) As used in this section:
"Energy Star product" means a product designated and labeled as such by the Environmental Protection Agency and the Department of Energy through the Energy Star program."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2005.