Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 797 entitled:

begs leave to report as follows:

The purpose of this measure is to encourage the use of renewable energy technologies by repealing the January 1, 2008, sunset date of the Renewable Energy Tax Credit, which applies to solar thermal, wind-powered, and photovoltaic energy systems for single family residential, multi-family residential, and commercial properties.

Hawaiian Electric Company, Hawaii Electric Light Company, Maui Electric Company, Inter-Island Solar Supply, Hawaii Solar Energy Association, and R & R Solar Supply submitted testimony in support of this measure. The Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs submitted testimony in support of intent of the bill. The Department of Taxation submitted testimony in opposition.

Your Committee finds that removing the sunset date of the Renewable Energy Tax Credit eliminates uncertainty and is essential for long-term planning by the renewable energy industry. Long-term stability allows manufacturers to better weigh their investment options and will signal to renewable energy business owners and investors that Hawaii is a profitable place to build a renewable energy business. Furthermore, the tax credit provides an incentive for the use of alternative energy sources that will lessen the State's dependency on fossil fuels.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 797 and recommends that it be referred to the Committee on Finance.