Report Title:

Income Tax Credit; Renewable Energy Producers

 

Description:

Authorizes an income tax credit for renewable energy technology systems that are installed and placed in service after 6/30/04.

 

HOUSE OF REPRESENTATIVES

H.B. NO.

7

TWENTY-SECOND LEGISLATURE, 2003

 

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

"235- Renewable energy producers; income tax credit. (a) Each individual or corporate resident taxpayer who 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 renewable energy technology systems that are installed and placed in service after June 30, 2004. The credit shall be per cent or $ , whichever is less, of the actual cost of the renewable energy technology system.

(b) If federal energy tax credits similar to the credit provided in this section are established after June 30, 2004, then the state tax credit provided in this section shall be reduced by the amount of the applicable federal energy tax credit.

(c) Tax credits shall apply only to the actual cost of the renewable energy technology system, including its accessories and installation, and shall not include the cost of consumer incentive premiums unrelated to the operation of the system or offered with the sale of the system. The tax credit shall be claimed against net income tax liability for the year in which the renewable energy technology system was purchased and placed in use in Hawaii. Tax credits that exceed the taxpayer's income tax liability may be used as credit against the taxpayer's income tax liability in subsequent years until exhausted.

(d) The director of taxation shall prepare such forms as may be necessary to claim a 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.

(e) As used in this section, "renewable energy technology system" means a system that captures and converts a renewable source of energy, such as wind, sun, biomass (including municipal solid waste, agricultural residues, landfill gas and fuels derived entirely from organic sources), hydro from running streams without dams and pumped storage, geothermal and the ocean (including ocean thermal energy conversion, tides, and waves) into:

(1) A usable source of thermal or mechanical energy;

(2) Electricity; or

(3) Fuel.

(f) If a tax credit is claimed under this section, no tax credit may be claimed under any other provision of this chapter.

(g) Claims for the tax credit under this section, including any amended claims, shall be filed on or before the end of the twelfth month following the taxable year for which the credit may be claimed."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval, and shall apply to taxable years beginning after December 31, 2003.

INTRODUCED BY:

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