STAND. COM. REP. NO. 867-04

Honolulu, Hawaii

, 2004

RE: S.B. No. 3162

S.D. 1

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 Finance, to which was referred S.B. No. 3162, S.D. 1, 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 in Hawaii by providing that when tax credits for the installation of renewable energy technology systems exceed a taxpayer's income tax liability in a particular year, the excess may be carried over and used as a credit toward the taxpayer's liability in subsequent years, until the tax credit is exhausted.

The Hawaiian Electric Company, Hawaii Bankers Association, Hawaii Solar Energy Association, PowerLight Corporation, and Smith Development supported this bill. The Department of Taxation and the Department of Business, Economic Development, and Tourism, supported the intent of the measure. The Tax Foundation of Hawaii submitted comments.

Your Committee has amended this bill by, among other things:

 

(1) Clarifying that the tax credit shall apply to a renewable energy technology system that is installed and placed in service by a taxpayer during the taxable year;

(2) Specifying that in the case of a partnership, S corporation, estate, or trust, the tax credit allowable is for every eligible renewable energy technology system that is installed and placed in service by the entity;

(3) Specifying that the tax credit shall be operative with respect to the taxation of banks and other financial corporations; provided the renewable energy technology system was installed after June 30, 2003;

(4) Limiting the tax credits to new renewable energy technology systems;

(5) Changing the effective date to July 1, 2010, to facilitate further discussion; and

(6) Making technical, nonsubstantive amendments for clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3162, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3162, S.D. 1, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

 

____________________________

DWIGHT Y. TAKAMINE, Chair