STAND. COM. REP. NO. 2469
RE: S.B. No. 2820
Honorable Ronald D. Kouchi
President of the Senate
Thirtieth State Legislature
Regular Session of 2020
State of Hawaii
Your Committee on Energy, Economic Development, and Tourism, to which was referred S.B. No. 2820 entitled:
"A BILL FOR AN ACT RELATING TO RENEWABLE ENERGY,"
begs leave to report as follows:
The purpose and intent of this measure is to increase the renewable energy technology tax credit cap per unit per system for multi-family residential properties.
Your Committee received testimony in support of this measure from the Climate Protectors Coalition; Our Revolution Hawaii; We Are One, Inc; ADON Renewables; 350Hawaii; Hawaii Solar Energy Association; and twenty-one individuals. Your Committee received comments on this measure from the Department of Taxation, Hawaii State Energy Office, and Tax Foundation of Hawaii.
Your Committee finds that Hawaii has one of the highest costs of living in the nation. A contributing factor to the high cost of living are utility rates, more specifically the price of electricity. Hawaii is positioned in one of the best locations to utilize solar energy to provide electricity to residential and commercial properties. However, your Committee notes that multi-family residential properties have not received an increase in the renewable energy technologies income tax credit since the establishment of the tax credit in 2003, while both single-family residential properties and commercial properties have been increased. This measure will bring multi-family residential properties into equity with single family residential properties for the renewable technologies income tax credit by increasing the cap amount of the tax credit.
Your Committee has amended this measure by:
(1) Changing the effective date to apply to taxable years beginning after December 31, 2020; and
(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
As affirmed by the record of votes of the members of your Committee on Energy, Economic Development, and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2820, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2820, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Energy, Economic Development, and Tourism,
GLENN WAKAI, Chair