Bill > SB2326

This bill establishes a new tax credit for the installation of solar canopies, which are outdoor shade-providing structures primarily designed for solar energy generation, featuring photovoltaic panels mounted above areas like parking lots or walkways, and maintaining the functionality of the space below. This credit, applicable to taxable years beginning after December 31, 2026, will cover thirty percent of the qualified expenses for purchasing and installing a solar canopy, with a maximum credit of $500,000 per taxpayer. Qualified expenses are those directly incurred for the purchase and installation of the solar canopy in the state. For partnerships and other pass-through entities, the credit is calculated at the entity level, with the distribution and share of the credit to be determined by rule. The Director of Taxation is tasked with creating necessary forms, requiring supporting information to validate claims, and adopting rules to implement the credit, which can be carried forward to future tax years if it exceeds the current year's tax liability. Claims must be filed by the end of the twelfth month following the close of the taxable year. The bill aims to incentivize the development of renewable energy by encouraging businesses to install solar canopies on commercial parking lots, especially in light of reduced federal solar tax incentives.

Government Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=2326&year=2026