Report Title:

Solar energy

Description:

Increases incentives to install solar energy systems.

HOUSE OF REPRESENTATIVES	H.B. NO.	2622
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII

A BILL FOR AN ACT

relating to energy.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that solar thermal energy devices provide a clean, efficient source of energy for residences.  Because of Hawaii's dependence of imported fossil fuels, the state is particularly vulnerable to the risks of energy shortages.  However, Hawaii also benefits from an abundance of solar power potential, and the use of such energy should be aggressively encouraged and pursued.

     SECTION 2.  Chapter 196, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§196-   Solar thermal energy devices required for new residential construction. (a)  Beginning January 1, 2010, solar thermal energy devices shall be installed in the construction of every new residential single-family residence, condominium, and townhouse, except when:

(1) Installation is impracticable due to building design or location of the building; or

(2) Installation is cost prohibitive;

as determined by the county building code authority upon a letter submitted by the homeowner from an architect or engineer licensed under chapter 464 to the effect that paragraph (1) or (2) is applicable and the reasons therefore.

(b) Installation of solar thermal energy devices shall be in accordance with Hawaiian Electric Company's 100-point installation inspection or a comparable quality assurance standard.

     (c)  The director of business, economic development, and tourism shall adopt rules pursuant to chapter 91 necessary for purposes of this section."

     SECTION 3.  Section 235-12.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "§235-12.5  Renewable energy technologies; income tax credit.  (a)  When the requirements of subsection (c) are met, each individual or corporate taxpayer that files an individual or corporate net income tax return for a taxable year may claim a tax credit under this section against the Hawaii state individual or corporate net income tax.  The tax credit may be claimed for every eligible renewable energy technology system that is installed and placed in service in the State by a taxpayer during the taxable year.  This credit shall be available for systems installed and placed in service in the State after June 30, 2003.  The tax credit may be claimed as follows:

     (1)  Solar thermal energy systems for:

         (A)  Single-family residential property:  [thirty-five] fifty per cent of the actual cost or [$2,250] $5,000, whichever is less;

         (B)  Multi-family residential property:  [thirty-five] fifty per cent of the actual cost or [$350] $1,000 per unit, whichever is less; and

         (C)  Commercial property:  [thirty-five] fifty per cent of the actual cost or $500,000, whichever is less;

     (2)  Wind-powered energy systems for:

         (A)  Single-family residential property:  twenty per cent of the actual cost or $1,500, whichever is less;

         (B)  Multi-family residential property:  twenty per cent of the actual cost or $200 per unit, whichever is less; and

         (C)  Commercial property:  twenty per cent of the actual cost or $500,000, whichever is less; and

     (3)  Photovoltaic energy systems for:

         (A)  Single-family residential property:  [thirty-five per cent] seventy-five of the actual cost or [$5,000] $12,500, whichever is less;

         (B)  Multi-family residential property:  [thirty-five] seventy-five per cent of the actual cost or [$350] $1,000 per unit, whichever is less; and

         (C)  Commercial property:  [thirty-five] seventy per cent of the actual cost or $1,000,000, whichever is less;

provided that multiple owners of a single system shall be entitled to a single tax credit; and provided further that the tax credit shall be apportioned between the owners in proportion to their contribution to the cost of the system.

     In the case of a partnership, S corporation, estate, or trust, the tax credit allowable is for every eligible renewable energy technology system that is installed and placed in service in the State 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 pursuant to section 235-110.7(a)."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2008, and shall be repealed when fifty per cent of the households in the state have installed solar thermal energy systems and twenty per cent of the households in the state have installed photovoltaic energy systems.  For purposes of repeal, each unit of a multi-family residential unit shall count as a household and a commercial property shall count as a household.

INTRODUCED BY:

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