STAND. COM. REP. NO.  880-16

Honolulu, Hawaii

                , 2016

RE:   H.B. No. 212

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 212, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to establish a nonrefundable income tax credit for taxpayers who install and place in service a battery backup system that uses batteries to store electrical energy generated by a solar energy system.

An individual testified in support of this measure.  The Division of Consumer Advocacy opposed this measure.  The Department of Taxation; Department of Business, Economic Development, and Tourism; Tax Foundation of Hawaii; Hawaiian Electric Company; Maui Electric; Hawaii Electric Light; and an individual commented on this measure.

     Your Committee has amended this measure by inserting unspecified amounts for:

(1)  The amount of the tax credit for each battery backup system installed; and

(2)  The cap amount of credit allowed for each battery backup system for single-family residential property and for commercial property.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 212, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 212, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair