THE SENATE	S.B. NO.	1237
THIRTY-FIRST LEGISLATURE, 2021		S.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO TAXATION.

 

 

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

 

     SECTION 1.  Section 235-12.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(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] $1,125 per system for single-family residential property;

          (B)  [$350] $175 per unit per system for multi-family residential property; and

          (C)  [$250,000] $125,000 per system for commercial property;

     (2)  For all other solar energy systems, the cap amounts shall be:

          (A)  [$5,000] $2,500 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 thirty-five per cent of the actual system cost or [$2,250,] $1,125, whichever is less;

          (B)  [$350] $175 per unit per system for multi-family residential property; and

          (C)  [$500,000] $250,000 per system for commercial property; provided that the cap amount shall be $500,000 per system for commercial property used for an eligible community-based renewable energy project pursuant to section 269-27.4; and

     (3)  For all wind-powered energy systems, the cap amounts shall be:

          (A)  [$1,500] $750 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,] $750, whichever is less;

          (B)  [$200] $100 per unit per system for multi-family residential property; and

          (C)  [$500,000] $250,000 per system for commercial property[.]; provided that the cap amount shall be $500,000 per system for commercial property used for an eligible community-based renewable energy project pursuant to section 269-27.4."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 2050 and shall apply to taxable years beginning after December 31, 2021.

 

 

Report Title:

Renewable Energy Technologies; Income Tax Credit

 

Description:

Reduces the cap amounts of the renewable energy technologies income tax credit.  Applies to taxable years beginning after 12/31/2021.  Effective 7/1/2050.  (SD2)

 

 

 

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