Hawaii Legislation Clarifies Which Solar Systems Can Claim State Credit

Thursday, September 17, 2020 - 12:15pm

Hawaii legislation effective Sept. 15 provides that for taxable years beginning Jan. 1, 2020, no renewable energy technologies tax credit can be claimed for a solar energy system that is 5 megawatts or larger in total output capacity and requires a power purchase agreement (PPA) approved by the public utilities commission (PUC). S.B. 2820 clarifies that those systems placed in service with a PPA approved or pending before Dec. 31, 2019, will continue to receive a tax credit for 35 percent of the actual cost or $500,000 per solar energy system with a total output capacity of at least 1,000 kilowatts per system of direct current, whichever is less. Solar energy systems integrated with a pumped hydroelectric energy storage system may still claim the credit, provided project approval filings have been made to the PUC by Dec. 31, 2021.