Bill Text: HI SB1431 | 2020 | Regular Session | Amended
Bill Title: Relating To Renewable Energy Technologies Tax Credits.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2020-03-16 - Re-referred to EEP, FIN, referral sheet 45 [SB1431 Detail]
Download: Hawaii-2020-SB1431-Amended.html
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THE SENATE |
S.B. NO. |
1431 |
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THIRTIETH LEGISLATURE, 2019 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 1 |
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A BILL FOR AN ACT
RELATING TO RENEWABLE ENERGY TECHNOLOGIES TAX CREDITS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. In 1976, the legislature, recognizing the critical importance of renewable energy to the State, enacted Act 189, Session Laws of Hawaii 1976 (Act 189), which established income tax credits to encourage investment in renewable energy systems. Since the enactment of Act 189, state law has been amended to authorize varying tax credit rates and durations of tax credits, and to include emergent, viable renewable energy technologies among technologies eligible for tax credits. In 2008, the legislature found that fossil fuel imports account for a greater impact upon Hawaii's economy than at any prior time, despite Hawaii being blessed with the greatest number of renewable energy resources in the nation.
The purpose of this Act is to encourage investment in the deployment of seawater air conditioning as a renewable energy technology by establishing an income tax credit for commercial seawater air conditioning systems connecting to a seawater air conditioning district cooling system.
SECTION 2. Chapter
235, Hawaii Revised Statutes, is amended by adding a new section to be
appropriately designated and to read as follows:
"§235- Seawater air conditioning district cooling
system connection; income tax credit. (a) There
shall be allowed to each taxpayer subject to the tax imposed under this
chapter, a tax credit that shall be deductible from the taxpayer's net income
tax liability, if any, imposed by this chapter for the taxable year in which
the credit is properly claimed.
(b) For each commercial air conditioning system
connecting to a seawater air conditioning district cooling system, the tax
credit shall be the actual cost of connecting the commercial seawater air
conditioning system to the seawater air conditioning district cooling system or
$250,000, whichever is less, per multi-family residential or commercial
property; provided that the total amount of all tax credits allowed under this
section shall not exceed $5,000,000 for all qualified taxpayers in any taxable
year.
(c) In the case of a partnership, S corporation,
estate, or trust, the tax credit allowable is for qualified expenses incurred
by the entity for the taxable year. The
expenses upon which the tax credit is computed shall be determined at the
entity level. Distribution and share of
credit shall be determined by rule.
(d) For commercial seawater air conditioning
systems, the Hawaii state energy office shall:
(1) Certify all
systems for which a credit is claimed under this section;
(2) Collect and
maintain a record of all qualified expenses for each taxpayer claiming a
credit; and
(3) Certify to each
taxpayer the amount of credit the taxpayer may claim; provided that if, in any
year, the annual amount of certified credits reaches $5,000,000 in the
aggregate, the Hawaii state energy office shall immediately discontinue
certifying credits and notify the department of taxation.
The chief energy officer may
adopt rules under chapter 91 as necessary to implement the certification
requirements of this subsection.
(e) The director of taxation shall prepare any
forms that may be necessary to claim a tax credit under this section. The director may also require the taxpayer to
furnish reasonable information to ascertain the validity of the claim for the
tax credit made under this section and may adopt rules necessary to effectuate
the purposes of this section pursuant to chapter 91.
(f) If the tax credit under this section exceeds
the taxpayer's income tax liability, the excess of the credit over liability
may be used as a credit against the taxpayer's income tax liability in
subsequent years until exhausted. All
claims for the tax credit under this section, including amended claims, shall
be filed on or before the end of the twelfth month following the close of the
taxable year for which the credit may be claimed. Failure to comply with this subsection shall
constitute a waiver of the right to claim the credit.
(g)
For the purposes of this section:
"Actual
cost" means costs related to the seawater air conditioning district
cooling system connection, including accessories and installation.
"Commercial
seawater air conditioning system" means a building air conditioning system
for a commercial, office, or residential building or collection of buildings
connected to a seawater air conditioning district cooling system.
"Property"
means a single, definable portion of real property located in the State as
described in a title recorded with the bureau of conveyances or land court that
is allowed by applicable law to be sold in fee simple separately from any other
real property located in the State.
"Seawater air
conditioning district cooling system" means an identifiable facility,
equipment, apparatus, or the like that utilizes naturally occurring cold, deep
seawater as its primary source of cooling that centralizes chilled water
production into a single central chiller plant for distribution of the chilled
water to multiple commercial seawater air conditioning systems.
(h) This section shall apply to eligible seawater air conditioning district cooling system connections that
are installed and placed in service on or after December 31, 2020."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2050; provided that this Act, upon its approval, shall apply to taxable years beginning after December 31, 2020, and shall not apply to taxable years beginning after December 31, 2030.
Report Title:
Income Tax Credit; Seawater Air Conditioning
Description:
Establishes an income tax credit for commercial seawater air conditioning systems connecting to a seawater air conditioning district cooling system. Requires the Hawaii state energy office to certify tax credits. Applies to eligible seawater air conditioning systems that are placed into service on or after 12/31/2020. Makes tax credit inapplicable for taxable years after 12/31/2030. Effective 7/1/2050. (HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
