Hawaii-2014-SB2195-Amended

SECTION 1. The legislature finds that it requires factual information on the fiscal impact of renewable energy tax credits in past years in order to evaluate the effectiveness of the tax credits and to properly compare projections for future years resulting from proposed changes to the tax credits.

SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"§235-A Joint report on renewable energy tax credits. The department of taxation, in collaboration with the department of business, economic development, and tourism, shall submit a joint report to the legislature no later than twenty days prior to the convening of each regular session. The joint report shall include the following:

(1) The number of renewable energy technology properties that have qualified for a renewable energy tax credit in each of the previous four taxable years for which data is available, categorized by:

(A) Type of technology; and

(B) Type of entity;

(2) The total cost of the renewable energy tax credit to the State during the past four taxable years, categorized by:

(A) Type of technology;

(B) Type of entity; and

(3) The estimated economic benefit that may be attributable to the renewable energy tax credit in each of the previous four taxable years for which data was collected pursuant to section 235-B, including:

(A) General excise and income tax paid by reporting business entities; and

(B) Estimated employment impacts, including:

(i) Number of full- and part-time employees maintained by reporting business entities;

(ii) Number of full- and part-time, temporary, and permanent positions created and lost by reporting business entities; and

(iii) Average pay of the positions reflected in subparagraphs (A) and (B).

§235-B Renewable energy tax credits; survey. (a) Business entities that install renewable energy technology eligible for a renewable energy tax credit under this chapter shall complete and file with the department of business, economic development, and tourism, through the department of business, economic development, and tourism's website, an annual survey on electronic forms prepared and prescribed by the department of business, economic development, and tourism. The annual survey shall be filed before June 30 of the calendar year following each year in which a renewable energy tax credit may be claimed under this chapter. The department of business, economic development, and tourism may adjust the due date of the annual survey by rule.

(b) The annual survey shall include the following information for the time period or periods specified by the department of business, economic development, and tourism:

(1) The estimated economic benefit to the business entity that may be attributable to the renewable energy tax credit;

(2) General excise and income tax paid by the business entity; and

(3) Estimated employment impacts, including:

(A) Number of full- and part-time employees maintained by the entity;

(B) Number of full- and part-time, temporary and permanent positions created and lost; and

The department of business, economic development, and tourism shall request information in each of these categories sufficient to measure the effectiveness of the tax credit. In preparing the survey and requesting any additional information, the department of business, economic development, and tourism shall ensure that reporting business entities are not subject to duplicative reporting requirements.

(c) The department of business, economic development, and tourism shall use information collected under this section and through other reporting requirements of the department of business, economic development, and tourism and the department of taxation to prepare summary descriptive statistics for each of the items listed under subsection (b).

(d) The department of business, economic development, and tourism and the department of taxation shall use the information collected under this section to study the effectiveness of renewable energy tax credits provided under this chapter. The department of business, economic development, and tourism and the department of taxation shall report on the results of this survey as provided in section 235-A.

(e) The department of business, economic development, and tourism and the department of taxation shall adopt rules pursuant to chapter 91 necessary to implement this section."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2014-2015 to the department of taxation for necessary costs in preparing and submitting the joint report described in section 2 to the legislature.

The sum appropriated shall be expended by the department of taxation for the purposes of this Act.

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2014-2015 to the department of business, economic development, and tourism for necessary costs in preparing and submitting the joint report described in section 2 to the legislature.

The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

SECTION 5. The department of taxation shall submit to the legislature no later than twenty days prior to the convening of the regular session of 2015, proposed legislation to amend this Act.

SECTION 6. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 7. New statutory material is underscored.

SECTION 8. This Act shall take effect on July 1, 2017.

THE SENATE	S.B. NO.	2195
TWENTY-SEVENTH LEGISLATURE, 2014		S.D. 2
STATE OF HAWAII		H.D. 1