Bill Text: HI HB2189 | 2010 | Regular Session | Introduced

Hawaii House Bill 2189 (Prior Session Legislation)

Introduced

Bill Title: Tax credit; solar energy system installers

Spectrum: Partisan Bill (Republican 4-0)

Status: (Introduced - Dead) 2010-01-22 - (H) Referred to EEP, FIN, referral sheet 3 [HB2189 Detail]

Download: Hawaii-2010-HB2189-Introduced.html

HOUSE OF REPRESENTATIVES	H.B. NO.	2189
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII

A BILL FOR AN ACT

relating to taxation.

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

SECTION 1. The legislature finds that state policy continues to move towards the development and increased use of clean renewable energy sources as a means to reduce dependence on foreign fossil fuels and to keep money from leaving the state economy.

The legislature further finds that despite the presence of federal and state tax credits and a state rebate program, one of the greatest obstacles for homeowners to use renewable energy, such as solar water heaters or photovoltaic panels, remains the high purchase price of these devices. Additional incentives are required in order for Hawaii's citizens to make more use of the natural advantage of solar energy.

The purpose of this Act is to provide a tax incentive to installers of solar energy devices to provide an incentive for expedient installation and sales of devices and to provide a price break to homeowner or other purchasers of solar energy devices to encourage more widespread use of these devices.

SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235-A Solar energy system installation; credit. (a) There shall be allowed to each taxpayer subject to the taxes imposed by this chapter, an income tax credit which shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed. The amount of the credit shall be five per cent of the cost of a solar energy system, excluding installation costs.

(b) In the case of a partnership, S corporation, estate, or trust, distribution and share of credit shall be determined by rule.

(c) If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of credits over liability shall be refunded to the taxpayer; provided that no refunds or payment on account of the tax credits allowed by this section shall be made for amounts less than $1. All claims, including any amended claims, for tax credits under this section 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 the foregoing provision shall constitute a waiver of the right to claim the credit.

(d) To qualify for the credit, a taxpayer shall:

(1) Meet the definition of "solar energy device installer"

as provided for in subsection (e);

(2) Pass along the amount of the credit in the form of savings on the purchase price of a solar energy device purchased from the solar energy device installer; and

(3) Install the device for which the credit is claimed.

(e) For purposes of this section, "solar energy device installer" means a person or entity subject to taxation under chapter 237 who is also recognized by a public utility as a contractor that installs solar energy devices.

(f) Credits may be claimed for the installation of multiple devices, provided that the total tax credits claimed by any individual taxpayer under this section shall not exceed $50,000. Credits may also be claimed in conjunction with any other credits available to a solar energy device installer under law.

(g) The director of taxation shall prepare forms as may be necessary to claim a credit under this section. The director may also require the taxpayer to furnish 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."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2010.

INTRODUCED BY:	_____________________________

Report Title:

Tax credit; solar energy system installers

Description:

Provides a tax credit for solar energy system installers.

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