STAND. COM. REP. NO. 2035

Honolulu, Hawaii

RE:    S.B. No. 2986

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Energy and Environment, to which was referred S.B. No. 2986 entitled:

"A BILL FOR AN ACT RELATING TO REFUNDABLE RENEWABLE ENERGY TAX CREDIT,"

begs leave to report as follows:

     The purpose of this measure is to make the renewable energy technologies income tax credit a refundable tax credit if certain conditions are met.

     Specifically, this measure allows a taxpayer whose sole source of income is derived from pension benefits or with an adjusted gross income of $20,000 or less to take a refundable tax credit for the purchase and installation of a renewable energy technology system, which includes solar water heating, photovoltaic, and wind systems.

     Testimony in support of this measure was submitted by the Department of Taxation; the Department of Business, Economic Development and Tourism; Hawaiian Electric Company, Inc.; Island Pacific Energy, LLC.; and the Hawaii Renewable Energy Alliance.  Comments were submitted by the Tax Foundation of Hawaii; and the Hawaii Solar Energy Association.

     Your Committee has amended this measure by:

     (1)  Indicating that the proposed tax credit shall apply to taxable years beginning after December 31, 2007; and

     (2)  Making a technical amendment to accurately reflect existing law.

     As affirmed by the record of votes of the members of your Committee on Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2986, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2986, S.D. 1, and be referred to the Committee on Economic Development and Taxation.

Respectfully submitted on behalf of the members of the Committee on Energy and Environment,

____________________________

RON MENOR, Chair