HOUSE OF REPRESENTATIVES	H.B. NO.	2417
TWENTY-SIXTH LEGISLATURE, 2012		H.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO RENEWABLE ENERGY.

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 subsections (a) and (b) to read:

     "(a)  When the requirements of subsection (d) 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 property upon which an eligible renewable energy technology system [that] is installed and placed in service in the State by a taxpayer during the taxable year.  The tax credit may be claimed as follows:

     (1)  For [each] a solar energy system:  thirty-five per cent of the actual cost or the cap amount determined in subsection (b), whichever is less; or

     (2)  For [each] a wind-powered energy system:  twenty per cent of the actual cost or the cap amount determined in subsection (b), 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).

     (b)  The amount of credit allowed for each property upon which an eligible renewable energy technology system is installed and placed in service shall not exceed the applicable cap amount, which is determined as follows:

     (1)  If the primary purpose of the solar energy system is to use energy from the sun to heat water for household use, then the cap amounts shall be:

         (A)  [$2,250] $2,500 per [system for] single-family residential [property;] tax map key number;

         (B)  [$350] $1,000 per unit per [system for] multi-family residential [property;] tax map key number; and

         (C)  $250,000 per [system for commercial property;] nonresidential tax map key number;

     (2)  For all other solar energy systems, the cap amounts shall be:

         (A)  [$5,000] $7,000 per [system for] single-family residential [property;] tax map key number; provided that if all or a portion of the system is used to fulfill the substitute renewable energy technology requirement pursuant to section 196-6.5(a)(3), the credit shall be reduced by thirty-five per cent of the actual system cost or $2,250, whichever is less;

         (B)  [$350] $1,000 per unit per [system for] multi-family residential [property;] tax map key number; and

         (C)  [$500,000 per system for commercial property;] For a single nonresidential tax map key number, $1,500 per kilowatt placed in service for the first three hundred kilowatts of capacity and $1,000 per kilowatt for the next four thousand seven hundred kilowatts placed into service; provided that the credit shall not apply to kilowatts produced in excess of five thousand kilowatts of capacity that are placed into service; and

     (3)  For all wind-powered energy systems, the cap amounts shall be:

         (A)  $1,500 per [system for] single-family residential [property;] tax map key number; provided that if all or a portion of the system is used to fulfill the substitute renewable energy technology requirement pursuant to section 196-6.5(a)(3), the credit shall be reduced by twenty per cent of the actual system cost or $1,500, whichever is less;

         (B)  $200 per unit per [system for] multi-family residential [property;] tax map key number; and

         (C)  $500,000 per [system for commercial] nonresidential property."

     2.  By amending subsection (h) to read:

     "(h)  Notwithstanding subsection (g), for any property upon which a renewable energy technology system[,] is installed and placed in service, an individual taxpayer may elect to have any excess of the credit over payments due refunded to the taxpayer, if:

     (1)  All of the taxpayer's income is exempt from taxation under section 235-7(a)(2) or (3); or

     (2)  The taxpayer's adjusted gross income is $20,000 or less [(], or $40,000 or less if filing a tax return as married filing jointly[)];

provided that tax credits properly claimed by a taxpayer who has no income tax liability shall be paid to the taxpayer; and provided further that no refund on account of the tax credit allowed by this section shall be made for amounts less than $1.

     A husband and wife who do not file a joint tax return shall only be entitled to make this election to the extent that they would have been entitled to make the election had they filed a joint tax return.

     The election required by this subsection shall be made in a manner prescribed by the director on the taxpayer's return for the taxable year in which the system is installed and placed in service.  A separate election may be made for each separate system that generates a credit.  An election once made is irrevocable."

     3.  By amending subsections (j) and (k) to read:

     "(j)  To the extent feasible, using existing resources to assist the energy-efficiency policy review and evaluation, the department shall assist with data collection on the following for each taxable year:

     (1)  The number of [renewable energy technology systems] properties that have qualified for a tax credit during the calendar year by:

         (A)  Technology type; and

         (B)  Taxpayer type (corporate and individual); and

     (2)  The total cost of the tax credit to the State during the taxable year by:

         (A)  Technology type; and

         (B)  Taxpayer type.

     (k)  This section shall apply to properties upon which an eligible renewable energy technology [systems that are] system is installed and placed in service on or after July 1, 2009."

     SECTION 2.  Independent power producers not currently regulated by the public utilities commission that have submitted an agreement with an electric utility company for approval by the public utilities commission by January 1, 2013, shall be allowed tax credits as authorized in the 2012 calendar year for renewable energy technologies placed into service after January 1, 2013, as part of the agreement.

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2030, and shall apply to taxable years beginning after December 31, 2012. 

Report Title:

Renewable Energy Technology; Tax Credit

Description:

Applies the Renewable Energy Technology Tax Credit on a per-property, as opposed to a per-system, basis.  Increases the maximum available credit for star energy systems installed on various types of properties.  Effective July 1, 2030.  Applies to tax years beginning after December 31, 2012.  (HB2417 HD2)

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