Report Title:

Renewable Energy Technologies; Tax Credit

Description:

Makes the renewable energy technologies tax credit a refundable tax credit.

THE SENATE	S.B. NO.	2018
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO RENEWABLE ENERGY TECHNOLOGIES TAX CREDIT.

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

     SECTION 1.  Section 235-12.5, Hawaii Revised Statutes, is amended as follows:

1.   By amending subsection (a) to read:

     "(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 refundable 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 per cent of the actual cost or $2,250, whichever is less;

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

         (C)  Commercial property:  thirty-five per cent of the actual cost or $250,000, 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 of the actual cost or $5,000, whichever is less;

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

         (C)  Commercial property:  thirty-five per cent of the actual cost or $500,000, 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)."

     2.   By amending subsection (e) to read:

     "(e)  If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of the credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted[.]; provided that the tax credit properly claimed by a taxpayer who has no income tax liability shall be paid to the taxpayer.  All claims for the tax credit under this section, including amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed.  Failure to comply with this subsection shall constitute a waiver of the right to claim the credit."

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  Statutory material to be repealed is bracketed and stricken.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

     SECTION 3.  This Act shall take effect upon its approval and shall apply to taxable years beginning after December 31, 2007.

INTRODUCED BY:

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