STAND. COM. REP. NO.  610-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 2618

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2618, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY STORAGE,"

begs leave to report as follows:

The purpose of this measure is to establish an income tax credit, available as either an investment or utilization credit, for grid-connected energy storage properties with a capacity of at least one megawatt or one megawatt-hour, that are installed and placed in service in the State for taxable years beginning after December 31, 2014, and before January 1, 2026.

The Hawaiian Electric Company, Hawaii Renewable Energy Alliance, Sempra US Gas and Power, Princeton Energy Group, and an individual testified in support of this measure.  The Department of Taxation; Department of Business, Economic Development and Tourism; Public Utilities Commission; Tax Foundation of Hawaii; Renewable Energy Action Coalition of Hawaii; Blue Planet Foundation; Beacon Power, LLC; and the Ulupono Initiative provided comments.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2618, H.D. 2, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair