STAND. COM. REP. NO. 914

 

Honolulu, Hawaii

                

 

RE:    S.B. No. 1237

       S.D. 2

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 1237, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to reduce the cap amounts of the renewable energy technologies income tax credit.

 

     Your Committee received written comments in support of this measure from one individual.

 

     Your Committee received written comments in opposition to this measure from the Office of Climate Change, Sustainability and Resiliency of the City and County of Honolulu; Sunaru, Inc., dba Solar Help Hawaii; Photonworks Engineering, LLP; Affordable Solar Contracting; Solar Services of Hawaii; Green Power Projects; Hawaii PV Coalition; Hawaii Solar Energy Association; Tesla; Blue Planet Foundation; Inter-Island Solar Supply; PV TECH; and nine individuals.

 

     Your Committee received written comments on this measure from the Department of Taxation, Hawaii Green Infrastructure Authority, Hawaii State Energy Office, Tax Foundation of Hawaii, Hawaiian Electric, Kauai Island Utility Cooperative, and Ulupono Initiative.

 

     Your Committee finds that this measure would amend the renewable energy technologies income tax credit by reducing the applicable cap amounts allowed to qualified taxpayers by fifty percent.

 

     Your Committee has amended this measure by:

 

     (1)  Providing that, for commercial property used for eligible community-based renewable energy projects, the cap amount shall be $500,000 per system for:

 

          (A)  Solar energy systems for which the primary purpose is not to heat water for household use; and

 

          (B)  Wind-powered energy systems;

 

     (2)  Clarifying that the measure shall apply to taxable years beginning after December 31, 2021; and

 

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

 

     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. 1237, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1237, S.D. 2.

 

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

 

 

 

________________________________

DONOVAN M. DELA CRUZ, Chair