STAND. COM. REP. NO. 2283

Honolulu, Hawaii

RE: S.B. No. 3183

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Energy and Intergovernmental Affairs, to which was referred S.B. No. 3183 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to amend the Renewable Energy Technologies Income Tax Credit by, beginning December 31, 2026:

(1) Prohibiting individually or jointly filing taxpayers with an adjusted gross income of $250,000 or greater from claiming a credit for certain solar energy systems installed and placed in service on a single-family residential property, with certain exemptions;

(2) Removing certain cap amounts for solar energy systems; and

(3) Increasing the adjusted gross income requirements for an individual taxpayer to elect to have any excess credits refunded.

Your Committee received testimony in support of this measure from Pacific Panel Cleaners; Energy Advisors, LLC; Independent Energy; and six individuals.

Your Committee received testimony in opposition to this measure from two individuals.

Your Committee received comments on this measure from the Department of Taxation; Hawaii State Energy Office; Sungage Financial LLC; Hawaii Solar Energy Association; EP Cube; Alternate Energy, Inc.; Sunrun; Green Power Projects LLC; Inter-Island Solar Supply/The Solaray Corporation; Sunspear Energy; and two individuals.

Your Committee finds that the Renewable Energy Technologies Income Tax Credit has been instrumental in the installation of renewable energy systems, furthering the State's transition away from fossil fuels. Currently, federal support for residential solar and energy storage is being scaled back or eliminated, creating significant uncertainty and disruption in the State's clean energy market. Your Committee believes that additional state-level incentives are necessary to support individuals who are most vulnerable to these federal cuts and the State's high electricity costs, increasing climate risks, and the growing demand for customer-sited solar and battery systems that enhance grid resilience. This measure will ensure that the State's renewable energy policies continue to promote affordability, equity, and economic opportunity and progress towards Hawaii's clean energy goals.

Your Committee has amended this measure by:

(1) Inserting an effective date of April 19, 2042, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Energy and Intergovernmental Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3183, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3183, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Energy and Intergovernmental Affairs,

________________________________

GLENN WAKAI, Chair