Bill Text: HI HB1295 | 2025 | Regular Session | Amended
Bill Title: Relating To Clean Energy.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2025-03-04 - Passed Third Reading as amended in HD 2 with none voting aye with reservations; Representative(s) Garcia, Kong voting no (2) and Representative(s) Pierick, Ward excused (2). Transmitted to Senate. [HB1295 Detail]
Download: Hawaii-2025-HB1295-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1295 |
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THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO CLEAN ENERGY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the Inflation Reduction Act of 2022 introduced and expanded tax credits for clean energy technologies to accelerate the transition to a clean energy economy. In addition to providing incentives to spur private-sector investment, the Inflation Reduction Act includes provisions to enable tax-exempt and governmental entities to take an active role in building the clean energy economy. The Inflation Reduction Act allows for "elective pay", a tax credit monetization option commonly known as "direct pay", which makes clean energy tax benefits available to those historically excluded from claiming them, such as state and local governments, nonprofit organizations, and public utilities. Since these tax-exempt and governmental entities are not subject to federal income tax, they could not previously claim the credits, making those benefits available only to private energy developers. The elective pay provisions of the Inflation Reduction Act levels the playing field for tax-exempt and governmental entities and offers a tremendous opportunity to expand the reach of clean energy incentives.
Accordingly, the purpose of this Act is to require all state and county agencies to utilize applicable federal clean energy tax credits, pursuant to the Inflation Reduction Act of 2022, for the purchase and financing of renewable energy projects and zero-emission vehicles.
SECTION 2. Beginning July 1, 2025, all state and county agencies shall utilize applicable federal clean energy tax credits under the elective pay, also known as direct pay, provisions of the Inflation Reduction Act of 2022, Pub. L. 117‑169, 136 Stat. 1818, as amended, for the purchase or financing of each of the following:
(1) Capital improvement projects that utilize clean energy technology, as defined in section 269-121, Hawaii Revised Statutes; and
(2) Vehicles that qualify as zero-emission vehicles under title 40 Code of Federal Regulations section 88.1;
SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 4. This Act shall take effect on July 1, 3000.
Report Title:
Clean
Energy; State and County Agencies; Renewable Energy Projects; Zero-Emission
Vehicles; Inflation Reduction Act of 2022
Description:
Requires all state and county agencies to utilize applicable federal clean energy tax credits, pursuant to the Inflation Reduction Act of 2022, for the purchase and financing of capital improvement projects that use clean energy technology and zero-emission vehicles. Effective 7/1/3000. (HD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
