HOUSE OF REPRESENTATIVES	H.B. NO.	1135
TWENTY-EIGHTH LEGISLATURE, 2015
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO TAXATION.

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

     SECTION 1.  Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§235-   Net energy metering tax credit. (a)  There shall be allowed to each qualifying taxpayer subject to the taxes imposed by this chapter, a net energy metering tax credit that shall be deductible from the qualifying taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.

The amount of the credit shall be equal to the amount of the qualifying taxpayer's lapsed credits for excess electricity.

(b)  The director of taxation shall prepare any forms that may be necessary to claim a tax credit under this section.  The director may also require the taxpayer to furnish reasonable information to ascertain the validity of the claim for credit made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91.

(c)  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.  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.

(d)  For the purposes of this section:

"Lapsed credits for excess electricity" means unused credits for excess electricity that lapse pursuant to section 269-106(b).

"Net income tax liability" means net income tax liability reduced by all other credits allowed under this chapter.

"Qualifying taxpayer" means an eligible customer-generator, as defined in section 269-101."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act, upon its approval, shall apply to

taxable years beginning after December 31, 2014.

INTRODUCED BY:

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Report Title:

Net Energy Metering Tax Credit

Description:

Establishes a nonrefundable income tax credit for taxpayers who participate in net energy metering and have unused credits for excess electricity that lapse before the credits can be applied to the taxpayer's utility bill.

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