HOUSE OF REPRESENTATIVES

H.B. NO.

1927

TWENTY-EIGHTH LEGISLATURE, 2016

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO SOLAR TAX CREDITS.

 

 

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

 


SECTION 1. The legislature finds that Hawaii public schools are crippled by high energy costs in the State and the enormous amount of energy each school requires. The department of education estimates spending more than forty-three million dollars in fiscal year 2015, increasing to more than forty-seven million dollars in fiscal year 2016, and accounting for approximately three-fourths of the department's budget.

Furthermore, the legislature finds that Hawaii has ample solar energy that would reduce electricity burdens on public schools as well as aid the State in reaching its renewable goals. The legislature further finds that businesses and members of the public have offered to supplement solar energy systems for schools through donations of solar air conditioning units or solar energy systems to provide electricity for air conditioning units and should receive tax credits to do so.

The purpose of this Act is to allow a tax credit for individual and corporate taxpayers that provide either solar-powered air conditioning units or solar energy systems specifically designed to provide electricity for air conditioning units for schools.

SECTION 2. Section 235-12.5, Hawaii Revised Statutes, is amended by amending subsections (a) through (c) to read as follows:

"235-12.5 Renewable energy technologies; income tax credit. (a) When the requirements of subsection (d) are met, each individual or corporate taxpayer that 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 every eligible renewable energy technology system that is installed and placed in service in the State by a taxpayer during the taxable year. The tax credit may be claimed as follows:

(1) For each solar energy system on residential or commercial property: thirty-five per cent of the actual cost or the cap amount determined in subsection (b), whichever is less; or

(2) For each solar-powered air conditioning unit or solar energy system specifically designed to provide electricity for air conditioning units on public school property, provided that the only purpose of the solar energy system is to use energy from the sun to provide electricity to an air conditioning unit for use by the public school: forty per cent of the actual cost or the cap amount determined in subsection (b), whichever is less; or

[(2)] (3) For each wind-powered energy system: twenty per cent of the actual cost or the cap amount determined in subsection (b), whichever is less;

provided that multiple owners of a single system shall be entitled to a single tax credit; and provided further that the tax credit shall be apportioned between the owners in proportion to their contribution to the cost of the system.

In the case of a partnership, S corporation, estate, or trust, the tax credit allowable is for every eligible renewable energy technology system that is installed and placed in service in the State by the entity. The cost upon which the tax credit is computed shall be determined at the entity level. Distribution and share of credit shall be determined pursuant to section 235-110.7(a).

(b) The amount of credit allowed for each eligible renewable energy technology system shall not exceed the applicable cap amount, which is determined as follows:

(1) If the primary purpose of the solar energy system is to use energy from the sun to heat water for household use, then the cap amounts shall be:

(A) $2,250 per system for single-family residential property;

(B) $350 per unit per system for multi-family residential property; and

(C) $250,000 per system for commercial property;

(2) If the primary purpose of the solar energy system is to use energy from the sun to provide electricity to an air conditioning unit for use by the public school, then the cap amount shall be $1,000,000 per system for public school property;

[(2)] (3) For all other solar energy systems, the cap amounts shall be:

(A) $5,000 per system for single-family residential property; provided that if all or a portion of the system is used to fulfill the substitute renewable energy technology requirement pursuant to section 196-6.5(a)(3), the credit shall be reduced by thirty-five per cent of the actual system cost or $2,250, whichever is less;

(B) $350 per unit per system for multi-family residential property; and

(C) $500,000 per system for commercial property; and

[(3)] (4) For all wind-powered energy systems, the cap amounts shall be:

(A) $1,500 per system for single-family residential property; provided that if all or a portion of the system is used to fulfill the substitute renewable energy technology requirement pursuant to section 196-6.5(a)(3), the credit shall be reduced by twenty per cent of the actual system cost or $1,500, whichever is less;

(B) $200 per unit per system for multi-family residential property; and

(C) $500,000 per system for commercial property.

(c) For the purposes of this section:

"Actual cost" means costs related to the renewable energy technology systems under subsection (a), including accessories and installation, but not including the cost of consumer incentive premiums unrelated to the operation of the system or offered with the sale of the system and costs for which another credit is claimed under this chapter.

"Household use" means any use to which heated water is commonly put in a residential setting, including commercial application of those uses.

"Public school property" means all public school buildings and grounds.

"Renewable energy technology system" means a new system that captures and converts a renewable source of energy, such as solar or wind energy, into:

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

(2) Electricity; or

(3) Fuel.

"Solar-powered air conditioning unit" means any identifiable facility, equipment, apparatus, or the like that converts solar energy to useful thermal or electrical energy for cooling purposes.

"Solar or wind energy system" means any identifiable facility, equipment, apparatus, or the like that converts solar or wind energy to useful thermal or electrical energy for heating, cooling, or reducing the use of other types of energy that are dependent upon fossil fuel for their generation."

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

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

 

INTRODUCED BY:

_____________________________

 

 

 

_____________________________


 


Report Title:

Solar; Tax Credit; Schools.

 

Description:

Allows a tax credit for individual and corporate taxpayers that provide either solar-powered air conditioning units or solar energy systems specifically designed to provide electricity for air conditioning units for schools.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.