STAND. COM. REP. NO. 166-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 2960

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Energy and Environmental Protection, to which was referred H.B. No. 2960 entitled:

"A BILL FOR AN ACT RELATING TO RENEWABLE ENERGY TECHNOLOGIES INCOME TAX CREDIT,"

begs leave to report as follows:

The purpose of this bill is to promote the use of renewable energy technologies in Hawaii by providing that when tax credits for the installation of renewable energy technology systems exceed a taxpayer's income tax liability, the excess may be carried over and used as credit toward the taxpayer's liability in subsequent years until the credit is exhausted.

Hawaiian Electric Company, Inc., Hawaii Solar Energy Association, Hawaii Renewable Energy Alliance, Hawaii PV Coalition, and PowerLight Corporation testified in support of this bill. The Department of Taxation supported the intent of the measure and suggested amendments.

Upon careful consideration, Your Committee has amended this bill by:

(1) Providing that in the case of a partnership, S corporation, estate, or trust:

(A) The tax credit allowable is for every eligible renewable energy technology system that is installed and placed in service by the entity;

(B) The cost upon which the tax credit is computed shall be determined at the entity level; and

(C) Distribution and share of the tax credit shall be determined pursuant to section 235-110.7(a), Hawaii Revised Statutes;

(2) Requiring that all claims for the tax credit shall be filed on or before the end of the twelfth month following the year for which the claim is being made;

(3) Requiring that the tax credit be claimed for the year in which the system was placed into service;

(4) Modifying the definition of "renewable energy technology system" to clarify that the system must be new; and

(5) Making technical, nonsubstantive amendments for purposes of clarity, style, and consistency.

As affirmed by the record of votes of the members of your Committee on Energy and Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2960, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2960, H.D. 1, and be referred to the Committee on Finance.

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

 

____________________________

HERMINA M. MORITA, Chair