STAND. COM. REP. NO.  226-16


Honolulu, Hawaii

                , 2016


RE:   H.B. No. 2511

      H.D. 1





Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii




     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 2511 entitled:




begs leave to report as follows:


     The purpose of this measure is to encourage and maximize the use of cost-effective energy storage technologies and systems by establishing an Energy Storage Property Tax Credit.


     The Blue Planet Foundation; Green Change Networks; Sunverge Energy, Inc.; Sierra Club of Hawaii-Oahu Group; Renewable Energy Action Coalition of Hawaii; Green Power Projects LLC; and several concerned individuals testified in support of this measure.  The Distributed Energy Resources Council of Hawaii and Solar Energy Association testified in support of the intent of this bill.  The Department of Taxation, Department of Business, Economic Development and Tourism, and Tax Foundation of Hawaii provided comments.


     Upon further consideration, your Committee has amended this measure by deleting its contents and inserting provisions ensuring that the State will continue to make robust progress toward its clean energy goal of 100 percent renewable energy by 2045 by making amendments to the Renewable Energy Technologies Income Tax Credit (Tax Credit) to conform to federal requirements relating to energy property.  Among other things, the amended measure:


     (1)  Clarifies that the Tax Credit may be claimed for every eligible energy property placed in service in the State by a taxpayer on or after July 1, 2017;


     (2)  Conforms the Tax Credit to what is allowed under federal law for a business tax credit or individual tax credit;


     (3)  Defines "energy property" to have the same meaning as defined in section 48 of the Internal Revenue Code of 1986, as amended, and related regulations, administrative guidelines, and pronouncements; and


     (4)  Defines "solar energy property" to have the same meaning as defined in Treasury Regulations section 1.48-9(d) and related administrative guidelines and pronouncements.


     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. 2511, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2511, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.



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