Report Title:

Renewable Energy Technologies; Tax Credit

Description:

Extends to January 1, 2010, the renewable energy technologies tax credit established under Act 207, SLH 2003. (SB1557 HD2)

THE SENATE

S.B. NO.

1557

TWENTY-THIRD LEGISLATURE, 2005

S.D. 2

STATE OF HAWAII

H.D. 2


 

A BILL FOR AN ACT

 

RELATING TO RENEWABLE ENERGY.

 

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

SECTION 1. The legislature finds that "The Final Report of the Energy Efficiency Policy Task Force to the 2002 State Legislature", issued in January 2002, demonstrates that the renewable energy tax credit provided fiscal and economic benefits to the State in excess of its short-term impact on the State's general fund. The majority of the tax credits claimed was for solar water heating, and for every tax dollar invested for this tax credit, the State gained $1.82 in tax revenues. The work of economist Dr. Tom Loudat, on behalf of the task force, concluded that the cumulative positive impact of the tax credits through 2002 exceeded $150,000,000. A peer review of this extensive cost-benefit analysis was completed by Dr. Leroy Laney.

The legislature also finds that the task force report was conducted during a period when oil prices ranged between $19 to $22 per barrel. Currently, oil prices are over $50 per barrel--with increased global demands for energy, issues which the State has no control over despite our heavy dependence on imported fossil fuels.

In 2003, the legislature encouraged the use of renewable energy systems by establishing renewable energy technologies tax credits for solar thermal, photovoltaic, and wind systems installed after June 30, 2003, through Act 207, Session Laws of Hawaii 2003.

The purpose of this Act is to continue to realize the fiscal and economic benefits derived from the renewable energy technologies tax credit by extending its sunset date to January 1, 2010.

SECTION 2. Act 207, Session Laws of Hawaii 2003, is amended by amending section 4 to read as follows:

"SECTION 4. This Act shall take effect on July 1, 2003, and shall be repealed January 1, [2008.] 2010."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2010.