Bill Text: HI SB2108 | 2024 | Regular Session | Amended
Bill Title: Relating To Renewable Energy Tax Credits.
Spectrum: Moderate Partisan Bill (Democrat 9-1)
Status: (Introduced - Dead) 2024-02-14 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. [SB2108 Detail]
Download: Hawaii-2024-SB2108-Amended.html
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THE SENATE |
S.B. NO. |
2108 |
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THIRTY-SECOND LEGISLATURE, 2024 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO RENEWABLE ENERGY TAX CREDITS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
"§235- Transferability
of renewable energy technologies income tax credits; condominium associations. (a) Each condominium association that claims a
renewable energy technologies income tax credit under section 235-12.5, may
transfer the credit, or a portion thereof, to another individual or corporate
taxpayer that is not related to the condominium association. The individual or corporate taxpayer that
receives the transferred credit shall be known as the transferee taxpayer and
shall be treated as the taxpayer for the purposes of subsections 235‑12.5(f)
through 235-12.5(h).
For
the purposes of this subsection, an individual or corporate taxpayer shall be
deemed related to the condominium association if the individual or corporate
taxpayer is a board member, managing agent, resident manager, or
other similarly titled individual, or unit owner of the condominium association.
(b)
Any amount paid by the transferee taxpayer to the condominium
association as consideration for the transfer of credits described in
subsection (a) shall be paid in cash and shall not be:
(1) Included
in the condominium association's gross income; or
(2) Deducted
by the transferee taxpayer.
(c)
The condominium association shall elect to transfer the credit, or a
portion thereof, by filing with the department of taxation on or before the end
of the twelfth month following the close of the taxable year for which the eligible
renewable energy technology system is installed and placed in service. Failure to comply with the foregoing
provision shall constitute a waiver of the right to transfer the credit. Transferred credits received during the
taxable year by the transferee taxpayer may be claimed for that taxable year
pursuant to subsection 235-12.5(f).
(d)
Credit transfers shall become irrevocable upon election. A transferee taxpayer shall not transfer
credits received pursuant to this section.
(e) The director of taxation shall prepare any
forms that may be necessary to transfer and claim a tax credit under this
section. The director may also require
the taxpayer and transferee taxpayer to furnish reasonable information to
ascertain the validity of the transfer of and claim for credit made under this
section and may adopt rules necessary to effectuate the purposes of this
section pursuant to chapter 91."
SECTION 2. Section 235-12.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Each individual or corporate taxpayer that
files an individual or corporate net income tax return for a taxable year may
claim a tax credit under this section against the Hawaii state individual or
corporate net income tax. The tax credit
may be claimed for every eligible renewable energy technology system that is
installed and placed in service in the State by a taxpayer during the taxable
year. The tax credit may be claimed as
follows:
(1) For each solar energy system: thirty-five per cent of the actual cost or the cap amount determined in subsection (b); provided that:
(A) For taxable years beginning after December 31, 2019, and except as provided in subparagraphs (B) and (C), no tax credit may be claimed for a solar energy system that is five megawatts in total output capacity or larger and requires a power purchase agreement approved by the public utilities commission;
(B) A
solar energy system that is five megawatts in total output capacity or larger,
installed and placed in service pursuant to a power purchase agreement approved
or pending approval by a decision and order by the public utilities commission [prior
to] before December 31, 2019, shall continue to receive a tax credit
equal to thirty-five per cent of the actual cost, or $500,000 per solar energy
system that has a total output capacity of at least one thousand kilowatts per
system of direct current, whichever is less; and
(C) For each solar energy system integrated with a pumped hydroelectric energy storage system, the tax credit may be claimed for thirty-five per cent of the actual cost or the cap amount determined in subsection (b), whichever is less; provided that applicable project approval filings have been made to the public utilities commission by December 31, 2021; or
(2) For each wind-powered energy system: twenty per cent of the actual cost or the cap amount determined in subsection (b), whichever is less;
provided
further that multiple owners of a single system shall be entitled to a single
tax credit[; and provided further] that [the tax credit] shall be
apportioned between the owners in proportion to their contribution to the cost
of the system[.], except that when a condominium association
transfers the tax credit, or a portion thereof, to a transferee taxpayer under section
235- , the condominium association unit owners shall not be entitled
to any apportionment or distribution of the transferred tax credit in
proportion to their respective ownership share.
In the case of a partnership, S corporation, estate, or trust, the tax credit allowable is for every eligible renewable energy technology system that is installed and placed in service in the State by the entity. The cost upon which the tax credit is computed shall be determined at the entity level. Distribution and share of credit shall be determined pursuant to administrative rule."
SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 4. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2040; provided that this Act shall apply to taxable years beginning after December 31, 2024.
Report Title:
DOTAX; Renewable Energy Technologies Income Tax Credit; Condominium Associations; Credit Transfers
Description:
Allows a condominium
association that claims a Renewable Energy Technologies Income Tax Credit under
section 235-12.5, HRS, to transfer the credit, or a portion thereof, to another
individual or corporate taxpayer that is not related to the condominium
association. Requires the Director of the
Department of Taxation to prepare forms necessary for the transfer of Renewable
Energy Technologies Income Tax Credits. Provides
that condominium association unit owners shall not be entitled to any
apportionment or distribution of a transferred Renewable Energy Technologies Income
Tax Credit when a condominium association transfers the tax credit. Takes effect 7/1/2040. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
