STAND. COM. REP. NO. 937-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2241

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Finance, to which was referred H.B. No. 2241, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to amend the Renewable Energy Technologies Income Tax Credit by:

(1) Beginning December 31, 2026, limiting claims for certain solar energy systems that are not third-party financed systems and installed and placed in service on a single-family residential property to taxpayers below certain income thresholds;

(2) Removing certain credit cap amounts for solar energy systems that are not third-party financed systems; and

(3) Increasing the maximum adjusted gross income an individual taxpayer must be below in order to be eligible for refundable credits and limiting credit refundability to systems that are not third-party financed systems.

Your Committee received testimony in support of this measure from the Department of Research and Development of the County of Hawaiʻi. Your Committee received testimony in opposition to this measure from the Hawaii Solar Energy Association; ELCCO Inc.; PV Tech; Solaray Corporation; Alternate Energy Inc.; and eight individuals. Your Committee received comments on this measure from the Department of Taxation; Hawaiʻi State Energy Office; and Tax Foundation of Hawaii.

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. 2241, H.D. 1, and recommends that it pass Third Reading.

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

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CHRIS TODD, Chair