REPORT TITLE:
Energy Tax Credit


DESCRIPTION:
Repeals the energy conservation tax credits on July 1, 2010.
Requires residential developers of new single family homes to
install solar water heaters or heat pumps in new residences
beginning on July 1, 2010.  (HB2329 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2329
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO ENERGY CONSERVATION TAX CREDITS.



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

 1      SECTION 1.  Chapter 196, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "196-      Water heating systems for new single family
 
 5 residential homes.  (a)  A solar water heater or heat pump
 
 6 electric water heater shall be installed and used for water
 
 7 heating for new single family residential dwellings.
 
 8      (b)  An alternative water heating system may be used when
 
 9 both a heat pump electric water heating system and a solar water
 
10 heating system have a simple payback period greater than ten
 
11 years when compared to the alternative system.  The simple
 
12 payback period is equal to the reasonable installed cost for a
 
13 heat pump electric water heating system or a solar water heating
 
14 system divided by the annual energy savings for the alternative
 
15 system."
 
16      SECTION 2.  Section 235-12, Hawaii Revised Statutes, is
 
17 amended by amending subsection (b) to read as follows:
 
18      "(b)  For taxable years beginning after December 31, 1989,
 
19 each individual or corporate resident taxpayer who files an
 

 
Page 2                                                     2329
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 individual or corporate net income tax return for a taxable year,
 
 2 may claim a tax credit under this section against the Hawaii
 
 3 state individual or corporate net income tax.  The tax credit may
 
 4 be claimed as follows:
 
 5      (1)  For wind energy systems that are installed and placed
 
 6           in service after December 31, 1989, but before July 1,
 
 7           [2003,] 2010, the credit shall be twenty per cent of
 
 8           the actual cost;
 
 9      (2)  For solar energy systems that are installed and placed
 
10           in service after December 31, 1989, but before July 1,
 
11           [2003,] 2010, on new and existing single family
 
12           residential buildings, the credit shall be in an amount
 
13           not to exceed thirty-five per cent or $1,750, whichever
 
14           is less, of the actual cost of the solar energy system;
 
15      (3)  For solar energy systems that are installed and placed
 
16           in service after December 31, 1989, but before July 1,
 
17           [2003,] 2010, on new and existing multiunit buildings
 
18           used primarily for residential purposes, the credit
 
19           shall be in an amount not to exceed thirty-five per
 
20           cent or $350 per building unit, whichever is less, of
 
21           the actual cost of the solar energy system;
 
22      (4)  For solar energy systems that are installed and placed
 
23           in service after December 31, 1989, but before July 1,
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           [2003,] 2010, in new and existing hotel, commercial,
 
 2           and industrial facilities, the credit shall be in an
 
 3           amount not to exceed thirty-five per cent of the actual
 
 4           cost of the solar energy system;
 
 5      (5)  For heat pumps that are installed and placed in service
 
 6           after December 31, 1989, but before July 1, [2003,]
 
 7           2010, in new and existing single-family residential
 
 8           buildings, the credit shall be in an amount not to
 
 9           exceed twenty per cent or $400, whichever is less, of
 
10           the actual cost of the heat pump;
 
11      (6)  For heat pumps that are installed and placed in service
 
12           after December 31, 1989, but before July 1, [2003,]
 
13           2010, in new and existing multiunit buildings used
 
14           primarily for residential purposes, the credit shall be
 
15           in an amount not to exceed twenty per cent or $200 per
 
16           building unit, whichever is less, of the actual cost of
 
17           the heat pump; provided that a licensed professional
 
18           engineer reviews the design of the system and provides
 
19           a written opinion that the system, in accordance with
 
20           recognized engineering practice, is designed to provide
 
21           not less than ninety per cent of the daily annual
 
22           average hot water needs of all of the occupants of the
 
23           building;
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      (7)  For heat pumps that are installed and placed in service
 
 2           after December 31, 1989, but before July 1, [2003,]
 
 3           2010, in new and existing hotel, commercial, and
 
 4           industrial facilities, the credit shall be in an amount
 
 5           not to exceed twenty per cent of the actual cost of the
 
 6           heat pump; and
 
 7      (8)  For ice storage systems that are installed and placed
 
 8           in service after December 31, 1990, but before July 1,
 
 9           [2003,] 2010, the credit shall be in an amount not to
 
10           exceed fifty per cent of the actual cost of the ice
 
11           storage system.
 
12 The per unit of actual cost of a solar energy system or heat pump
 
13 referred to in subsection (b)(3) and (6) shall be determined by
 
14 multiplying the actual cost of the solar energy system or heat
 
15 pump installed and placed in service in the multiunit building by
 
16 a fraction, the numerator being the total square feet of that
 
17 unit in the multiunit building, and the denominator being the
 
18 total square feet of all the units in the multiunit building.
 
19      If federal energy tax credits similar to any of those
 
20 provided in paragraphs (1) to (8) are established after June 30,
 
21 1998, but before July 1, [2003,] 2010, then the state tax credit
 
22 provided in the respective paragraph or paragraphs shall be
 
23 reduced by the amount of the applicable federal energy tax
 
24 credit."
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      SECTION 3.  Statutory material to be repealed is bracketed.
 
 2 New statutory material is underscored.
 
 3      SECTION 4.  This Act shall take effect upon its approval;
 
 4 provided that section 1 shall take effect on July 1, 2010.