STAND. COM. REP. NO.  523-12


Honolulu, Hawaii

                , 2012


RE:   H.B. No. 2417

      H.D. 1





Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii




     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 2417 entitled:




begs leave to report as follows:


     The purpose of this measure is to limit the number of claimable renewable energy technology system tax credits for each subject property rather than each renewable energy technology system on a subject property.


     The Department of Business, Economic Development, and Tourism and the Department of Taxation testified in support of the intent of this measure.  Solar Energy Industries Association; SunRun; Energy Industries; Sunetric; SolarCity; Grand Solar, Inc.; Hawaiian Island Solar; Sierra Club Hawaii Chapter; Hawaii Renewable Energy Alliance; RevoluSun, LLC; Distributed Energy Partners, LLC; Hawaii Solar Energy Association; Blue Planet Foundation; SunPower Systems Corporation; Smart Energy Hawaii; and an individual opposed this measure.  The Tax Foundation of Hawaii provided comments on this measure.


     Your Committee has amended this measure by:


     (1)  Limiting the claimable tax credit for each subject tax map key;


     (2)  Allowing nonresidential tax map keys to claim a tax credit instead of commercial properties;


     (3)  Changing the tax credit cap for photovoltaic solar energy systems on each nonresidential tax map key number to $1,500 per kilowatt for the first 300 kilowatts and an unspecified amount per kilowatt for the next 4,700 kilowatts; provided that the credit shall not apply to kilowatts produced in excess of 5,000 kilowatts of capacity that are placed into service;


     (4)  Allowing independent power producers that have submitted an agreement with an electric utility company for approval by the Public Utilities Commission by January 1, 2013, to claim the tax credit as authorized in the 2012 calendar year for renewable technologies placed into service after January 1, 2013, as a part of the agreement; and


     (5)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.


     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. 2417, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2417, H.D. 1, and be referred to the Committee on Finance.


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