THE SENATE	S.B. NO.	2234
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII

A BILL FOR AN ACT

relating to renewable energy systems.

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

     SECTION 1.  The legislature finds that federal stimulus funds for energy projects are available for a limited period of time.  Investors and renewable energy project developers are seeking locations for solar, wind, biomass, biofuel, wave, geothermal, hydropower, ocean thermal energy, and other renewable energy projects.  Attracting those projects and investment dollars to Hawaii can provide jobs and long-term energy, environmental, and economic benefits.  This Act will provide a measure of energy security, provide economic diversification, and attract funding and investment to Hawaii during a critical economic period.

     The purpose of this Act is to exempt renewable energy systems from the general excise tax for a limited period of time.

     SECTION 2.  Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§237-   Exemption of sale or lease of renewable energy systems. (a)  Beginning January 1, 2011, and ending December 31, 2015, there shall be exempted from the measure of the taxes imposed by this chapter all of the gross proceeds arising from the sale, installation, servicing, and leasing of a renewable energy system.

(b)  As used in this section:

"Renewable energy system" means a system that produces electricity or liquid fuels solely from one or more of the following renewable energy sources:

(1) Wind;

(2) The sun;

(3) Falling or flowing water;

(4) Biogas, including landfill and sewage-based digester gas;

(5) Geothermal;

(6) Ocean water, currents, and waves;

(7) Biomass, including biomass crops, algae, agricultural and animal residues and wastes, and municipal solid waste;

(8) Biofuels; and

(9) Hydrogen produced from water, biogas, or biomass, using energy from renewable energy sources."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval and shall be repealed on December 31, 2015.

INTRODUCED BY:

_____________________________

Report Title:

General Excise Tax; Renewable Energy Systems; Exemption

Description:

Exempts renewable energy systems from the general excise tax from January 1, 2011, to December 31, 2015.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.