Bill Text: HI HCR160 | 2011 | Regular Session | Amended

---

Bill Title: Renewable Energy Tax Credit

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2011-04-19 - (S) Referred to ENE/WAM. [HCR160 Detail]

Download: Hawaii-2011-HCR160-Amended.html

---

HOUSE OF REPRESENTATIVES	H.C.R. NO.	160
TWENTY-SIXTH LEGISLATURE, 2011		H.D. 1
STATE OF HAWAII

HOUSE CONCURRENT

RESOLUTION

 

 

REQUESTING THE GOVERNOR TO REQUIRE REIMBURSEMENT TO THE GENERAL FUND FOR THE AMOUNTS OF REFUNDABLE TAX CREDITS UNDER HRS 235-12.5, THE RENEWABLE ENERGY TECHNOLOGIES INCOME TAX CREDIT.

 

 

     WHEREAS, the Legislature declares that the State of Hawaii must reduce its reliance on imported fossil fuel; and

 

     WHEREAS, to facilitate this public policy, the Legislature has enacted a renewable energy technology system tax credit under section 235-12.5, Hawaii Revised Statutes (HRS); and

 

     WHEREAS, Act 154, Session Laws of Hawaii 2009, made the credit refundable; and

 

     WHEREAS, since then, the tax expenditure for the credit has grown substantially, much more than the estimate upon which the Legislature relied to pass Act 154; and

 

     WHEREAS, this tax expenditure for the credit is paid directly and exclusively from the general fund; and

 

     WHEREAS, the Legislature has recently learned that some state agencies, the operation of which are paid from non-general funds, have entered into contracts for the installation of renewable energy technology systems on their property; and

 

     WHEREAS, the Legislature also has learned that other state agencies are considering entering into such contracts; and

 

     WHEREAS, two basic contract models appear to be involved:

 

     (1)  Under one model, a renewable energy technology system contractor installs a system on a state agency's property at no charge to the state agency for installation.  The contractor pays for the installation by (A) obtaining financing based on the future sale of electricity generated by the system to the state agency and (B) claiming the refundable tax credit; and

 

     (2)  Under the other model, a renewable energy technology system contractor installs the system on property leased from a state agency and pays lease rent that is deposited into the state agency's non-general fund.  The contractor bears the entire installation cost, but uses the refundable state tax credit to pay for part of that cost; and

 

     WHEREAS, under both models, the state agencies' non-general funds are benefitted, but at the expense of the general fund; and

 

     WHEREAS, the Legislature finds that, during the current difficult budgetary period, the general taxpayers should not subsidize the special beneficiaries of those non-general funds; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Twenty-sixth Legislature of the State of Hawaii, Regular Session of 2011, the Senate concurring, that the Governor is requested to require the reimbursement of the general fund from a non-general fund for the amount of a refundable tax credit under section 235-12.5, HRS, when the following occurs after June 30, 2011:

 

     (1)  A state agency contracts with a person to install a renewable energy technology system on the state agency's property;

 

     (2)  The state agency's non-general fund is expected to benefit from the installation of the system because of reduced electricity expenditures or increased lease rent revenues; and

 

     (3)  The contractor who installs the system claims the refundable tax credit; and

 

     BE IT FURTHER RESOLVED that, if federal or state law prevents such a reimbursement of the general fund from the non-general fund, the Governor is requested to prohibit the state agency from entering into the contract; and

 

     BE IT FURTHER RESOLVED that the Director of Taxation, with the assistance of the Director of Business, Economic Development, and Tourism, is requested to calculate the amount of refundable tax credits claimed under section 235-12.5, HRS, between July 1, 2009 and December 31, 2011 by contractors based on renewable energy technology systems installed on state and county agencies' property; and

 

     BE IT FURTHER RESOLVED that the Director of Finance is requested to recommend to the Governor and Legislature whether the general fund should be reimbursed by the state agencies' non-general funds or counties for the amount of refundable tax credits claimed during that period; and

 

     BE IT FURTHER RESOLVED that the Director of Business, Economic Development, and Tourism is requested to:

 

     (1)  Coordinate the state directors' actions that are requested under this Concurrent Resolution; and

 

     (2)  Submit a report to the Legislature before the convening of the Regular Session of 2012 of the findings and recommendations of the state directors; and

 

     BE IT FURTHER RESOLVED that certified copies be transmitted to the Governor, Director of Business, Economic Development, and Tourism, Director of Finance, and Director of Taxation.

 

 

 

Report Title: 

Renewable Energy Tax Credit