STAND. COM. REP. NO. 898

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 665

       S.D. 2

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 665, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO RENEWABLE ENERGY,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to address renewable energy tax incentives.

 

     More specifically, this measure replaces the current income tax credit for renewable energy technology systems with tax credits for solar energy property, wind energy property, and energy storage property.

 

     Your Committee received written comments in support of this measure from Amber Kinetics, Distributed Energy Resources Council of Hawaii, Ulupono Initiative, and three individuals.

 

     Your Committee received written comments in opposition to this measure from the Department of Business, Economic Development, and Tourism.

 

     Your Committee received written comments on this measure from the Department of Taxation and the Tax Foundation of Hawaii.

 

     Your Committee finds that the development of renewable energy is essential to meeting Hawaii's clean energy goals.  Your Committee also finds that investment in energy storage is a crucial step in modernizing Hawaii's energy grid.  Your Committee notes that energy storage technologies are not addressed by current state income tax incentives.

 

     Your Committee has amended this measure by:

 

     (1)  Amending the cap amounts of the tax credit with regard to energy storage property and wind energy property;

 

     (2)  Clarifying that the tax credit shall not be authorized for taxable years ending after December 31, 2035;

 

     (3)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

 

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

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 665, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 665, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

________________________________

JILL N. TOKUDA, Chair