Lawmakers may restructure the state’s signature renewable energy tax credit.
The Renewable Energy Technologies Income Tax Credit will cover up to 35% of the cost of a new rooftop solar installation, but the total amount that applicants receive is often less.
The credit is capped at $5,000, meaning that for any system costing more than about $15,000, the credit won’t cover the full 35% of expenses.
House Bill 2241 would remove that cap, which could help more Hawaiʻi households pay for rooftop solar as the federal government takes many of its comparable incentives off the table.
The measure would also set a new income limit for the tax credit. In order to qualify, an individual cannot make over $250,000 a year, with joint filers capped at $350,000.
These changes are intended to target the credit toward low- and moderate-income households.
But Rocky Mould of the Hawaiʻi Solar Energy Association said the income limit could dampen demand for new solar at a time when the industry is already facing headwinds.
“We're really concerned that making changes or restricting the tax credit in any way will harm our goals and have unintended consequences,” he said during testimony on the bill in a House Finance Committee hearing on Monday.
The committee is expected to issue a decision on whether to move the bill forward on Tuesday afternoon.
