Bill Text: HI SB2511 | 2022 | Regular Session | Amended
Bill Title: Relating To Taxation.
Spectrum: Partisan Bill (Democrat 11-0)
Status: (Enrolled - Dead) 2022-06-27 - Notice of intent to veto (Gov. Msg. No. 1216) [SB2511 Detail]
Download: Hawaii-2022-SB2511-Amended.html
|
THE SENATE |
S.B. NO. |
2511 |
|
THIRTY-FIRST LEGISLATURE, 2022 |
S.D. 2 |
|
|
STATE OF HAWAII |
H.D. 1 |
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO TAXATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 235-12.5, Hawaii Revised Statutes, is amended as follows:
1. By amending subsections (a) through (c) to read:
"(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 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; or
(3) For each firm renewable energy system: per cent of the actual cost or the cap amount determined in subsection (b) per firm renewable energy system that has a total output capacity of at least one thousand kilowatts per system of alternating current, 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.
In the case of a partnership, S corporation,
estate, or trust, the tax credit allowable [is] shall be 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.
(b) The
amount of credit allowed for each eligible renewable energy technology system shall
not exceed the applicable cap amount, which is determined as follows:
(1) If the primary purpose of the solar energy system is to use energy from the sun to heat water for household use, then the cap amounts shall be:
(A) $2,250 per system for single-family residential property;
(B) $350 per unit per system for multi-family residential property; and
(C) $250,000 per system for commercial property;
(2) For all other solar energy systems, the cap amounts shall be:
(A) $5,000 per system for single-family residential property; provided that if all or a portion of the system is used to fulfill the substitute renewable energy technology requirement pursuant to section 196-6.5(a)(3), the credit shall be reduced by thirty-five per cent of the actual system cost or $2,250, whichever is less;
(B) $350 per unit per system for multi-family residential property; and
(C) $500,000 per system
for commercial property; [and]
(3) For all wind-powered energy systems, the cap amounts shall be:
(A) $1,500 per system for single-family residential property; provided that if all or a portion of the system is used to fulfill the substitute renewable energy technology requirement pursuant to section 196-6.5(a)(3), the credit shall be reduced by twenty per cent of the actual system cost or $1,500, whichever is less;
(B) $200 per unit per system for multi-family residential property; and
(C) $500,000 per system
for commercial property[.]; and
(4) For all firm renewable
energy systems, the cap amount shall be $750,000.
(c) For
the purposes of this section:
"Actual cost" means costs related
to the renewable energy technology systems under subsection (a), including accessories
and installation, but not including the cost of consumer incentive premiums unrelated
to the operation of the system or offered with the sale of the system and costs
for which another credit is claimed under this chapter.
"Firm renewable energy system"
means a renewable energy technology system that is always available
on the demand of the energy system's operator, consistent with the terms of an approved
power purchase agreement.
"Household use" means any use to which
heated water is commonly put in a residential setting, including commercial application
of those uses.
"Renewable energy" shall have the
same meaning as in section 269-91.
"Renewable energy technology system"
means a new system that captures and converts a renewable source of energy, such
as solar or wind energy, into:
(1) A
usable source of thermal or mechanical energy;
(2) Electricity;
or
(3) Fuel.
"Solar or wind energy system" means
any identifiable facility, equipment, apparatus, or the like that converts solar
or wind energy to useful thermal or electrical energy for heating, cooling, or reducing
the use of other types of energy that are dependent upon fossil fuel for their generation."
2. By
amending subsections (g) and (h) to read:
"(g) For solar energy systems[,] and firm
renewable energy systems, a taxpayer may elect to reduce the eligible credit
amount by thirty per cent and if this reduced amount exceeds the amount of income
tax payment due from the taxpayer, the excess of the credit amount over payments
due shall be refunded to the taxpayer; provided that tax credit amounts properly
claimed by a taxpayer who has no income tax liability shall be paid to the taxpayer;
[and] provided further that no refund on account of the tax credit allowed
by this section shall be made for amounts less than $1.
The election required by this subsection
shall be made in a manner prescribed by the director on the taxpayer's return for
the taxable year in which the system is installed and placed in service. A separate election may be made for each separate
system that generates a credit. An election
once made [is] shall be irrevocable.
(h) Notwithstanding subsection (g), for any renewable energy technology system, including a firm renewable energy system, an individual taxpayer may elect to have any excess of the credit over payments due refunded to the taxpayer, if:
(1) All of the taxpayer's income is exempt from taxation under section 235-7(a)(2) or (3); or
(2) The taxpayer's adjusted gross income is $20,000 or less (or $40,000 or less if filing a tax return as married filing jointly);
provided that tax credits properly claimed by a taxpayer
who has no income tax liability shall be paid to the taxpayer; [and] provided
further that no refund on account of the tax credit allowed by this section shall
be made for amounts less than $1.
A husband and wife who do not file a joint tax return shall only be entitled to make this election to the extent that they would have been entitled to make the election had they filed a joint tax return.
The election required by this subsection
shall be made in a manner prescribed by the director on the taxpayer's return for
the taxable year in which the system is installed and placed in service. A separate election may be made for each separate
system that generates a credit. An election
once made [is] shall be irrevocable."
3. By amending subsection (k) to read:
"(k) This section shall apply to eligible renewable
energy technology systems that are installed and placed in service on or after July
1, 2009[.] and before January 1, 2046."
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect on July 1, 2050, and shall apply to taxable years beginning after December 31, 2022.
Report Title:
Renewable Energy Technologies; Income Tax Credit; Firm Renewable Energy Systems
Description:
Expands the renewable energy technologies income tax credit to include firm renewable energy systems. Caps the total amount of tax credits for each firm renewable energy system at $750,000. Sunsets the renewable energy technologies income tax credit on 12/31/2045. 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.
