Report Title:

Energy Efficiency

Description:

Implements the recommendations of the Energy Efficiency Policy Task Force.

HOUSE OF REPRESENTATIVES

H.B. NO.

2836

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to energy.

 

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

SECTION 1. The purpose of this Act is to implement the recommendations of the energy efficiency policy task force, which was established by Act 163, Session Laws of Hawaii 1998, to explore and make recommendations to the legislature on the most cost-effective means of supporting increased energy efficiency and sustainability in Hawaii.

This Act among other matters, implements certain recommendations of the task force, including:

(1) Restricting energy tax credits to renewable energy technologies and setting appropriate credit levels and dollar caps; and

(2) Requiring the department of business, economic development, and tourism to provide and support efficiency and renewable energy education programs.

SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235-     Renewable energy technologies; income tax credit. (a) Each individual or corporate resident taxpayer who 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 renewable energy technology systems that are installed and placed in service after December 31, , but before July 1, , the credit shall be per cent or $ , whichever is less, of the actual cost of the renewable energy technology system.

(b) If federal energy tax credits similar to the credit provided in this section are established after June 30, , but before July 1, , then the state tax credit provided in this section shall be reduced by the amount of the applicable federal energy tax credit.

(c) Tax credits shall apply only to the actual cost of the renewable energy technology system, including its accessories and installation, and shall not include the cost of consumer incentive premiums unrelated to the operation of the system or offered with the sale of the system. The tax credit shall be claimed against net income tax liability for the year in which the renewable energy technology system was purchased and placed in use in Hawaii. Tax credits that exceed the taxpayer's income tax liability may be used as credit against the taxpayer's income tax liability in subsequent years until exhausted.

(d) The director of taxation shall prepare such forms as may be necessary to claim a credit under this section. 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.

(e) As used in this section, "renewable energy technology system" means a system that captures and converts a renewable source of energy, such as wind, sun, biomass (including municipal solid waste, agricultural residues, landfill gas and fuels derived entirely from organic sources), hydro from running streams without dams and pumped storage, geothermal and the ocean (including ocean thermal energy conversion, tides, and waves) into:

(1) A usable source of thermal or mechanical energy;

(2) Electricity; or

(3) Fuel.

SECTION 3. Section 26-18, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The department of business, economic development, and tourism shall be headed by a single executive to be known as the director of business, economic development, and tourism.

The department shall undertake statewide business and economic development activities, undertake energy development and management, provide economic research and analysis, plan for the use of Hawaii's ocean resources, [and] encourage the development and promotion of industry and international commerce through programs established by law[.] and provide and support efficiency and renewable energy education programs."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval, except section 2 shall take effect after December 31, _____.

INTRODUCED BY:

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