STAND. COM. REP. NO.  1-18

 

Honolulu, Hawaii

                , 2018

 

RE:   H.B. No. 1864

      H.D. 1

 

 

 

 

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

 

Sir:

 

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 1864 entitled:

 

"A BILL FOR AN ACT RELATING TO RENEWABLE ENERGY TECHNOLOGIES,"

 

begs leave to report as follows:

 

     The purpose of this measure is to expand the income tax credit for renewable energy technologies to include ocean thermal energy conversion systems constructed for the purpose of research and development by providing an income tax credit of 35 percent of the actual cost, up to $1,500,000, for each such ocean thermal energy conversion system.

 

     The Oahu County Committee on Legislative Priorities, Hawaii Automobile Dealers' Association, Sierra Club of Hawai‘i, and several individuals supported this measure.  The Department of Taxation, Tax Foundation of Hawaii, and Natural Energy Laboratory of Hawaii Authority provided comments.

 

     Your Committee has amended this measure by:

 

     (1)  Specifying that eligible ocean thermal energy conversion research and development systems must generate 100 kilowatts of electricity or more and be certified by the Hawaii State Energy Office;

 

     (2)  Making the tax credit effective for taxable years that begin after December 31, 2018, to allow the Department of Taxation sufficient time to make the necessary changes to forms and the Department's computer system;

 

     (3)  Changing its effective date to January 28, 2045, to encourage further discussion; and

 

     (4)  Making a technical, nonsubstantive amendment for the purpose of clarity.

 

     As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1864, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1864, H.D. 1, and be referred to your Committee on Economic Development & Business.

 

 

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

 

 

 

 

____________________________

CHRIS LEE, Chair