Bill Text: HI HB2522 | 2010 | Regular Session | Amended

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Bill Title: Renewable Energy Systems; Exemption From General Excise Tax

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-02-10 - (H) Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting no (0) and M. Lee, Souki excused (2). [HB2522 Detail]

Download: Hawaii-2010-HB2522-Amended.html

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STAND. COM. REP. NO.  247-10

 

Honolulu, Hawaii

                , 2010

 

RE:   H.B. No. 2522

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Sir:

 

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 2522 entitled:

 

"A BILL FOR AN ACT RELATING TO RENEWABLE ENERGY,"

 

begs leave to report as follows:

 

     The purpose of this measure is to exempt specific renewable energy systems from the general excise tax from January 1, 2011, to December 31, 2015.

 

     The Department of Business, Economic Development, and Tourism, Department of Taxation, Hawaiian Electric Company and its subsidiaries, and the Blue Planet Foundation supported this measure.  The Tax Foundation of Hawaii provided comments.

 

     Your Committee finds that there is a significant amount of federal funding, both grants and tax incentives, available for renewable energy projects.  This measure will help to attract  federal funding and jobs in the renewable energy sector by providing a general excise tax exemption for the construction of utility-scale renewable energy facilities built within a five-year period.

 

     Your Committee has amended this measure by:

 

     (1)  Clarifying that the exemption is on the gross proceeds for the sale, installation, servicing, and leasing of a renewable energy system installed between January 1, 2011, and December 31, 2015;

 

     (2)  Clarifying the definition of "renewable energy systems";

 

     (3)  Requiring the Department of Business, Economic Development, and Tourism to certify whether a renewable energy project qualifies for an exemption and to adopt rules for this purpose; and

 

     (4)  Making technical, nonsubstantive changes for the purposes of clarity and style.

 

     As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2522, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2522, H.D. 1, and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

 

 

		____________________________ HERMINA MORITA, Chair