The House Committee on Energy & Environmental Protection (EEP) adopted HB497, which will serve as the vehicle to thoroughly address the issue of using tax credits to maintain economic expansion and further promote renewable energy in a fiscally equitable way.
Under the proposed legislation, solar hot water incentives would remain a priority, with the tax credit cap for a single family dwelling increasing to $2500 per household and $500 per unit for multi-family residential properties. Small wind projects (1 Megawatt or less) would be unaffected.
The tax credit for photovoltaic systems will be incrementally phased down from 30 percent of the actual cost to 15 percent over the next 5 years. At that point, the Department of Business, Economic Development & Tourism (DBEDT) will provide a cost-benefit analysis of the incentive and help determine its future.
“What we’ve done here, is taken input from stakeholders on all sides of the issue to come up with a comprehensive solution that keeps the economy growing and continues to expand access to renewable energy in a fiscally responsible manner,” said EEP Chair Chris Lee (Kailua, Waimanalo).
The measure will now advance to the Committee on Commerce and Consumer Affairs.