Gov. Josh Green may spare a renewable energy incentive that Hawaiʻi lawmakers put on the chopping block.
House Bill 796 would sunset several income tax credits, including one that offers people up to $5,000 back for the installation of a rooftop solar system.
The solar industry and other renewable energy stakeholders broadly oppose the bill. They claim that the elimination of the renewable energy tax credit would jeopardize Hawaiʻi's transition away from fossil fuels.
Solar companies are already bracing for higher costs due to tariffs, as well as the possibility that Congress could rescind several federal clean energy tax incentives.
Green expressed his intent to veto HB796 on Friday.
"Categorically sunsetting income tax credits will not only disincentivize future investors from doing business in Hawai‘i, but will destabilize existing businesses that currently rely upon these tax credits," he wrote.
Rocky Mould, executive director of the Hawaiʻi Solar Energy Association, said he was grateful the governor seems responsive to the local solar industry's concerns.
Mould believes the renewable energy tax credit is a crucial signal to investors and developers that Hawaiʻi is a good place to do business.
"We really benefit from being seen as this leader in solar," he said. "Reversing that would have been devastating."
Green has until July 9 to make a final decision about vetoing the bill.
