Solar and Wind Energy Credit (Personal) (Hawaii)

This is the approved revision of this page, as well as being the most recent.
Jump to: navigation, search

Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place Hawaii

Name Solar and Wind Energy Credit (Personal)
Incentive Type Personal Tax Credit
Applicable Sector Commercial, Residential, Multi-Family Residential
Eligible Technologies Solar Water Heat, Solar Space Heat, Photovoltaics, Wind
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount Solar Thermal and PV: 35%;

Wind: 20%


Carryover Provisions Excess credit may be carried forward until exhausted.


Eligible System Size Not specified

Equipment Requirements System must be new and in compliance with all applicable performance and safety standards.
Start Date 2009-07-01
Expiration Date None






Maximum Incentive Varies by technology and property type (see summary for details)










Program Administrator Hawaii Department of Taxation
Website http://tax.hawaii.gov/geninfo/renewable/
Date added to DSIRE 2000-01-01
Last DSIRE Review 2014-09-02



References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Summary

Note: On January 2, 2014, Hawaii Revised Statue '''§235-12.5 regarding the taxation of renewable systems were adopted and became effective. An accompanying change in the Hawaii Administrative Rules (HAR 235-12.5) 'clarifies how virtual and aggregated net metered systems are to be taxed. '“Other solar energy systems installed and “placed in service” from January 1, 2013 through January 1, 2014 must adhere to §18-235-12.01T to 06T, Temporary Administrative Rules. For more information and tax forms, visit the Hawaii Department of Taxation website.


Originally enacted in 1976, the Hawaii Energy Tax Credits allow individuals or corporations to claim an income tax credit of 20% of the cost of equipment and installation of a wind system and 35% of the cost of equipment and installation of a solar thermal or photovoltaic (PV) system.*

For solar thermal water heating systems, the maximum allowable credits are as follows:


  • Single family residential property is eligible for a credit of 35% of the actual cost or $2,250, whichever is less;
  • Multi-family residential property is eligible for a credit of 35% of the actual cost or $350 per unit, whichever is less; and
  • Commercial property is eligible for a credit of 35% of the actual cost or $250,000, whichever is less.

For photovoltaic systems, the maximum allowable credits are as follows:


  • Single family residential property is eligible for a credit of 35% of the actual cost or $5,000, whichever is less; if all or part of the system is used as a substitute renewable energy technology for the solar water heating requirement for new residential construction, the credit shall be reduced by thirty-five per cent of the actual system cost or $2,250, whichever is less;
  • Multi-family residential property is eligible for a credit of 35% of the actual cost or $350 per unit, whichever is less; and
  • Commercial property is eligible for a credit of 35% of the actual cost or $500,000, whichever is less.

For wind powered energy systems the maximum allowable credits are as follows:


  • Single family residential property is eligible for a credit of 20% of the actual cost or $1,500, whichever is less; if all or part of the system is used as a substitute renewable energy technology for the solar water heating requirement for new residential construction, the credit shall be reduced by twenty per cent of the actual system cost or $1,500, whichever is less;
  • Multi-family residential property is eligible for a credit of 20% of the actual cost or $200 per unit, whichever is less; and
  • Commercial property is eligible for a credit of 20% of the actual cost or $500,000, whichever is less.

For a system that is business property, it is important to note that the costs that exceed the amount allowable for the maximum energy tax credit may be used for the Capital Goods Excise tax credit. In addition, for taxable years beginning after December 31, 2005, the dollar amount of any utility rebate must be deducted from the cost of the qualifying system and its installation before applying the state tax credit.

A new provision was added to the tax credits in June 2009, with the passage of SB 464. This legislation, effective July 1, 2009, allows the tax credit to be refundable under certain conditions. For solar energy systems, a taxpayer can reduce the eligible credit amount by 30%. If this reduced amount exceeds the amount of income taxes to be paid by the taxpayer, the excess credit will be refunded to the taxpayer. If the tax credit exceeds a tax payer’s income liability, the excess credit over liability may be used as a credit against the taxpayer’s income liability until exchausted. Taxpayers whose entire income is exempt or whose adjusted gross income is $20,000 or less (or $40,000 or less if filing jointly) may receive the tax credit as a refund.


Incentive Contact

Contact Name Information Specialist
Department Hawaii Department of Taxation
Division Taxpayer Services Branch
Address P.O. Box 259

Place Honolulu, Hawaii
Zip/Postal Code 96809
Phone (808) 587-4242


Email Taxpayer.Services@hawaii.gov
Website http://www.state.hi.us/tax
     
     

Authorities (Please contact the if there are any file problems.)

Authority 1: HRS §235-12.5
Date Effective 2003-07-01
Date Enacted 1976, subsequently amended
Expiration Date None

Authority 2: Temporary Administrative Rules
Date Effective 2012-11-16
Date Enacted 2012-11-09


















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"