HOUSE OF REPRESENTATIVES

H.B. NO.

212

TWENTY-EIGHTH LEGISLATURE, 2015

H.D. 2

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO TAXATION.

 

 

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-   Battery backup system tax credit. (a) 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 battery backup system that is installed and placed in service in the State by a taxpayer during the taxable year.

The amount of the credit shall be equal to       per cent of the actual cost of each battery backup system installed 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 battery backup 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 battery backup system shall not exceed the applicable cap amount, which is determined as follows:

(1) $         per system for single-family residential property;

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

(3) $         per system for commercial property.

(c) For the purposes of this section:

"Actual cost" means costs related to the battery backup system 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.

"Battery backup system" or "system" means any identifiable facility, equipment, apparatus, or the like that uses batteries to store electrical energy generated by a solar energy system, as defined in section 235-12.5, for use during times when no solar resources are available to generate power; provided that for each single-family, multi-family, or commercial property, a system shall consist of batteries with a collective capacity of no more than five kilowatt hours.

(d) The director of taxation shall prepare any forms that may be necessary to claim a tax 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) If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of the credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted. All claims for the tax credit under this section, including amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with this subsection shall constitute a waiver of the right to claim the credit."

SECTION 2. Section 235-12.5, Hawaii Revised Statutes, is amended by amending the definition of "actual cost" to read as follows:

""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. "Actual cost" does not include costs related to battery backup systems, as defined in section 235-  ."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2015.



Report Title:

Battery Backup System Tax Credit

 

Description:

Establishes a nonrefundable income tax credit for taxpayers who purchase and install battery backup systems for solar energy systems. (HB212 HD2)

 

 

 

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