Report Title:

Renewable Energy Technologies; Tax Credit

Description:

Makes permanent the renewable energy technologies tax credit established under Act 207, SLH 2003. (HD1)

THE SENATE

S.B. NO.

1557

TWENTY-THIRD LEGISLATURE, 2005

S.D. 2

STATE OF HAWAII

H.D. 1


 

A BILL FOR AN ACT

 

RELATING TO RENEWABLE ENERGY.

 

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

SECTION 1. The legislature finds that the final, Report of the Energy Policy Task Force, issued in January 2002, demonstrates that the renewable energy tax credit provides fiscal and economic benefits to the State of Hawaii in excess of its short-term impact on the State's general fund. The majority of the tax credits claimed are for solar water heating, and for every tax dollar invested for this tax credit, the State gains $1.82 in tax revenues. The work of economist, Dr. Tom Loudat, on behalf of the Task Force, concluded that the cumulative positive impact of the tax credits through 2002 was in excess of $150,000,000. A peer review of this extensive cost-benefit analysis was completed by Dr. Leroy Laney.

The legislature also finds that the task force report was conducted during a period when oil prices ranged between $19 to $22 per barrel. Currently, oil prices are over $50 per barrel with increased global demands for energy, issues which the State of Hawaii has no control over despite our heavy dependence on imported fossil fuels.

Finally, the legislature finds that removal of the sunset date of the renewable energy tax credit is a critical buying signal and investment signal. Such an action eliminates the uncertainty of the continuation of these tax credits and allows for long-term planning by the local renewable energy industry. It will also establish a stable public energy policy that is essential in achieving increased energy security through investment in renewable energy technologies, one of the sectors that is targeted for growth and out-of-state investments by local economic development boards.

SECTION 2. Act 207, Session Laws of Hawaii 2003, is amended by amending section 4 to read as follows:

"SECTION 4. This Act shall take effect on July 1, 2003[, and shall be repealed January 1, 2008]."

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 Statutory material to be repealed is bracketed and stricken.

SECTION 4. This Act shall take effect upon its approval.