Bill Text: HI SB1198 | 2013 | Regular Session | Introduced
Bill Title: Renewable Energy Technologies Income Tax Credit
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-02-12 - The committee on ENE deferred the measure. [SB1198 Detail]
Download: Hawaii-2013-SB1198-Introduced.html
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THE SENATE |
S.B. NO. |
1198 |
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TWENTY-SEVENTH LEGISLATURE, 2013 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO RENEWABLE ENERGY TECHNOLOGIES INCOME TAX CREDIT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 235-12.5, Hawaii Revised Statutes, is amended to read as follows:
§235-12.5 Renewable energy
technologies; income tax credit. (a) When the requirements of
subsection (d) are met, 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
renewable energy technology [system] property that is installed
and placed in service in the State by a taxpayer during the taxable year.
The tax credit may be claimed as follows:
(1) For [each] solar energy [system:] property,
the primary purpose of which is to heat water for household use: [thirty-five
] fifteen per cent of the [actual cost the cap amount determined
in subsection (b), whichever is less;] qualified renewable energy
technology expenditure; or
(2) For all other solar energy property: fifteen per cent of the qualified renewable energy technology expenditure; or
[(2)] (3) For [each wind-powered]
wind energy [system:] property: [twenty] fifteen
per cent of the [actual cost or the cap amount determined in subsection (b),
whichever is less;] qualified renewable energy technology expenditure;
provided that multiple owners of [a single system]
renewable energy technology property 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] qualified
renewable energy technology expenditure of the [system.] renewable
energy technology property.
In the case of a partnership, S corporation,
estate, or trust, the tax credit allowable is for [every] eligible
renewable energy technology [system] property that is installed
and placed in service in the State by the entity. The [cost] qualified
renewable energy technology expenditure 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 renewable energy technology system shall not exceed the
applicable cap amount, which is determined as follows:
(1) If the primary purpose of the solar energy
system is to use energy from the sun to heat water for household use, then the
cap amounts shall be:
(A) $2,250 per system for
single-family residential property;
(B) $350 per unit per system for
multi-family residential property; and
(C) $250,000 per system for
commercial property;
(2) For all other solar energy systems, the
cap amounts shall be:
(A) $5,000 per system for
single-family residential property; provided that if all or a portion of the
system is used to fulfill the substitute renewable energy technology
requirement pursuant to section 196-6.5(a)(3), the credit shall be reduced by
thirty-five per cent of the actual system cost or $2,250, whichever is less;
(B) $350 per unit per system for
multi-family residential property; and
(C) $500,000 per system for
commercial property; and
(3) For all wind-powered energy systems,
the cap amounts shall be:
(A) $1,500 per system for
single-family residential property; provided that if all or a portion of the
system is used to fulfill the substitute renewable energy technology
requirement pursuant to section 196-6.5(a)(3), the credit shall be reduced by
twenty per cent of the actual system cost or $1,500, whichever is less;
(B) $200 per unit per system for
multi-family residential property; and
(C) $500,000 per system for
commercial property.]
[(c)] (b) For the purposes
of this section:
["Actual
cost"] "Qualified renewable energy technology expenditure"
means costs related to the renewable energy technology [systems] property
under subsection (a), including accessories and installation, but [not
including] does not include the cost of consumer incentive premiums
unrelated to the operation of the [system] renewable energy
technology property or offered with the sale of the [system and] renewable
energy technology property, any and all costs associated with the
storage of the electricity produced by the renewable energy technology property
such as but not limited to back-up batteries, and costs for which another
credit is claimed under this chapter. Any cost incurred and paid for the
repair, construction, or reconstruction of a structure in conjunction with the
installation and placing in service of renewable energy technology property
shall not constitute a part of the qualified renewable energy technology
expenditure for the purpose of this section. Costs for installation or labor
must be properly allocable to the onsite preparation, assembly, or original
installation of renewable energy technology property.
"Household use" means any use to which heated water is commonly put in a residential setting, including commercial application of those uses.
"Installed and placed in service" means that the renewable energy technology property is ready and available for its specific use.
"Renewable energy technology [system"]
property" means a new system that captures and converts a renewable
source of energy, such as solar or wind energy, into:
(1) A usable source of thermal or mechanical energy;
(2) Electricity; or
(3) Fuel.
"Solar or wind energy [system"]
property" means any identifiable facility, equipment, apparatus, or
the like that converts solar or wind energy to useful thermal or electrical
energy for heating, cooling, or reducing the use of other types of energy that
are dependent upon fossil fuel for their generation.
[(d)] (c) For taxable years
beginning after December 31, 2005, the dollar amount of any utility rebate
shall be deducted from the cost of the qualifying [system]
renewable energy technology property
and its installation before applying the state tax credit.
[(e)] (d) The director of
taxation shall prepare any forms that may be necessary to claim a tax credit
under this section, including forms identifying the technology type of each tax
credit claimed under this section, whether for solar or wind. 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.
[(f)] (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, unless otherwise elected by
the taxpayer pursuant to subsection [(g) or (h).] (f). 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.
[(g) For solar energy systems, a
taxpayer may elect to reduce the eligible credit amount by thirty per cent and
if this reduced amount exceeds the amount of income tax payment due from the
taxpayer, the excess of the credit amount over payments due shall be refunded
to the taxpayer; provided that tax credit amounts properly claimed by a
taxpayer who has no income tax liability shall be paid to the taxpayer; and
provided further that no refund on account of the tax credit allowed by this
section shall be made for amounts less than $1.
The election required by this subsection
shall be made in a manner prescribed by the director on the taxpayer's return
for the taxable year in which the system is installed and placed in
service. A separate election may be made for each separate system that
generates a credit. An election once made is irrevocable.
(h)] (f) [Notwithstanding
subsection (g), for] For any renewable energy technology [system,]
property, an individual taxpayer may elect to have any excess of the
credit over payments due refunded to the taxpayer, if:
(1) All of the taxpayer's income is exempt from taxation under section 235-7(a)(2) or (3); or
(2) The taxpayer's adjusted gross income is $20,000 or less (or $40,000 or less if filing a tax return as married filing jointly);
provided that tax credits properly claimed by a taxpayer who has no income tax liability shall be paid to the taxpayer; and provided further that no refund on account of the tax credit allowed by this section shall be made for amounts less than $1.
A husband and wife who do not file a joint tax return shall only be entitled to make this election to the extent that they would have been entitled to make the election had they filed a joint tax return.
The election required by this subsection shall
be made in a manner prescribed by the director on the taxpayer's return for the
taxable year in which the [system] property is installed and
placed in service. A separate election may be made for each separate [system]
renewable energy technology property that generates a credit. An
election once made is irrevocable.
[(i)] (g) No taxpayer shall
be allowed a credit under this section for the portion of the renewable energy
technology [system] property required by section 196-6.5 that is
installed and placed in service on any newly constructed single-family
residential property authorized by a building permit issued on or after
January 1, 2010.
[(j)] (h) To the extent
feasible, using existing resources to assist the energy-efficiency policy
review and evaluation, the department shall assist with data collection on the
following for each taxable year:
(1) The number of renewable energy technology [systems]
properties that have qualified for a tax credit during the calendar year
by:
(A) Technology type; and
(B) Taxpayer type (corporate and individual); and
(2) The total cost of the tax credit to the State during the taxable year by:
(A) Technology type; and
(B) Taxpayer type.
(i) If a credit is determined and claimed under this section, with respect to any renewable energy technology property installed and placed in service, the depreciation basis and cost basis of such property shall be reduced by fifty per cent of the amount of credit so determined.
[(k)] (j)
This section shall apply to eligible renewable energy technology [systems]
properties that are installed and placed in service on or after July 1,
2009[.] , and on or before December 31, 2016."
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2013.
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INTRODUCED BY: |
_____________________________ |
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BY REQUEST |
Report Title:
Renewable Energy Technologies Income Tax Credit
Description:
Clarifies the renewable energy technologies income tax credit.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
