| 47 | | - | PART I SECTION 1. Section 235-17, Hawaii Revised Statutes, is amended as follows: 1. By amending subsection (c) to read: "(c) [If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of credits over liability shall be refunded to the taxpayer; provided that no refunds or payment on account of the tax credits allowed by this section shall be made for amounts less than $1.] If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of the credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted. All claims, including any amended claims, for tax credits under this section shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit." 2. By amending subsections (h) and (i) to read: "(h) Every taxpayer claiming a tax credit under this section for a qualified production shall, no later than ninety days following the end of each taxable year in which qualified production costs were expended, submit a written, sworn statement to the department of business, economic development, and tourism, together with a verification review by a qualified certified public accountant using procedures prescribed by the department of business, economic development, and tourism, identifying: (1) All qualified production costs as provided by subsection (a), if any, incurred in the previous taxable year; (2) The amount of tax credits claimed pursuant to this section, if any, in the previous taxable year; and (3) The number of total hires versus the number of local hires by category and by county. This information may be reported from the department of business, economic development, and tourism to the legislature in redacted form pursuant to subsection [(i)(4).] (i)(5). (i) The department of business, economic development, and tourism shall: (1) Maintain records of the names of the taxpayers and qualified productions thereof claiming the tax credits under subsection (a); (2) Obtain and total the aggregate amounts of all qualified production costs per qualified production and per qualified production per taxable year; (3) Provide a letter to the director of taxation specifying the amount of the tax credit per qualified production for each taxable year that a tax credit is claimed and the cumulative amount of the tax credit for all years claimed; [and] (4) Publish on its website the names of the qualified productions and the amount of tax credits certified per qualified production per filing year; and [(4)] (5) Submit a report to the legislature no later than twenty days prior to the convening of each regular session detailing the non-aggregated qualified production costs that form the basis of the tax credit claims and expenditures, itemized by taxpayer, in a redacted format to preserve the confidentiality of the taxpayers claiming the credit. Upon each determination required under this subsection, the department of business, economic development, and tourism shall issue a letter to the taxpayer, regarding the qualified production, specifying the qualified production costs and the tax credit amount qualified for in each taxable year a tax credit is claimed. The taxpayer for each qualified production shall file the letter with the taxpayer's tax return for the qualified production to the department of taxation. Notwithstanding the authority of the department of business, economic development, and tourism under this section, the director of taxation may audit and adjust the tax credit amount to conform to the information filed by the taxpayer." 3. By amending subsection (l) to read: "(l) The total amount of tax credits allowed under this section in any particular year shall be $50,000,000; however, if the total amount of credits applied for in any particular year exceeds the aggregate amount of credits allowed for [such] that year under this section, the excess shall be treated as having been applied for in the subsequent year and shall be claimed in [such] the subsequent year; provided that no excess shall be allowed to be claimed after December 31, [2025.] 2032." SECTION 2. Act 88, Session Laws of Hawaii 2006, as amended by Act 89, Session Laws of Hawaii 2013, as amended by Act 143, Session Laws of Hawaii 2017, is amended by amending section 4 to read as follows: "SECTION 4. This Act shall take effect on July 1, 2006; provided that: (1) Section 2 of this Act shall apply to qualified production costs incurred on or after July 1, 2006, and before January 1, [2026;] 2033; and (2) This Act shall be repealed on January 1, [2026,] 2033, and section 235-17, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day before the effective date of this Act." PART II SECTION 3. Section 235-12.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows: "(b) The amount of credit allowed for each eligible renewable energy technology system shall not exceed the applicable cap amount, which is determined as follows: (1) If the primary purpose of the solar energy system is to use energy from the sun to heat water for household use, then the cap amounts shall be: (A) [$2,250] $1,125 per system for single-family residential property; (B) [$350] $175 per unit per system for multi-family residential property; and (C) [$250,000] $125,000 per system for commercial property; (2) For all other solar energy systems, the cap amounts shall be: (A) [$5,000] $2,500 per system for single-family residential property; provided that if all or a portion of the system is used to fulfill the substitute renewable energy technology requirement pursuant to section 196-6.5(a)(3), the credit shall be reduced by thirty-five per cent of the actual system cost or [$2,250,] $1,125, whichever is less; (B) [$350] $175 per unit per system for multi-family residential property; and (C) [$500,000] $250,000 per system for commercial property; provided that the cap amount shall be $500,000 per system for commercial property used for an eligible community-based renewable energy project pursuant to 269-27.4; and (3) For all wind-powered energy systems, the cap amounts shall be: (A) [$1,500] $750 per system for single-family residential property; provided that if all or a portion of the system is used to fulfill the substitute renewable energy technology requirement pursuant to section 196-6.5(a)(3), the credit shall be reduced by twenty per cent of the actual system cost or [$1,500,] $750, whichever is less; (B) [$200] $100 per unit per system for multi-family residential property; and (C) [$500,000] $250,000 per system for commercial property[.]; provided that the cap amount shall be $500,000 per system for commercial property used for an eligible community-based renewable energy project pursuant to section 269-27.4." PART III SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 5. This Act shall take effect on July 1, 2050; provided that: (1) Section 1 shall apply to taxable years beginning after December 31, 2021; and (2) Section 3 shall apply to renewable energy technology systems installed and placed in service after December 31, 2021. |
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| 47 | + | PART I SECTION 1. Section 235-17, Hawaii Revised Statutes, is amended as follows: 1. By amending subsections (c) and (d) to read: "(c) If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of credits over liability shall be refunded to the taxpayer; provided that no refunds or payment on account of the tax credits allowed by this section shall be made for amounts less than $1[.]; provided that, for all qualified productions, if the tax credit exceeds the taxpayer's income tax liability, the excess of credit over liability shall not be refunded, but may be carried forward until exhausted. All claims, including any amended claims, for tax credits under this section shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit. (d) To qualify for this tax credit, a production shall: (1) Meet the definition of a qualified production specified in subsection m; (2) Have qualified production costs totaling at least $200,000; (3) Provide the State a qualified Hawaii promotion, which shall be at a minimum, a shared-card, end-title screen credit, where applicable; (4) Provide evidence of reasonable efforts to hire local talent and crew; and [(5) Provide evidence when making any claim for products or services acquired or rendered outside of this State that reasonable efforts were unsuccessful to secure and use comparable products or services within this State; (6)] (5) Provide evidence of financial or in-kind contributions or educational or workforce development efforts, in partnership with related local industry labor organizations, educational institutions, or both, toward the furtherance of the local film and television and digital media industries." 2. By amending subsection (h) and (i) to read: "(h) Every taxpayer claiming a tax credit under this section for a qualified production shall, no later than ninety days following the end of each taxable year in which qualified production costs were expended, submit a written, sworn statement to the department of business, economic development, and tourism, together with a verification review by a qualified certified public accountant using procedures prescribed by the department of business, economic development, and tourism, identifying: (1) All qualified production costs as provided by subsection (a), if any, incurred in the previous taxable year; (2) The amount of tax credits claimed pursuant to this section, if any, in the previous taxable year; and (3) The number of total hires versus the number of local hires by category and by county. This information may be reported from the department of business, economic development, and tourism to the legislature in redacted form pursuant to subsection [(i)(4).] (i)(5). (i) The department of business, economic development, and tourism shall: (1) Maintain records of the names of the taxpayers and qualified productions thereof claiming the tax credits under subsection (a); (2) Obtain and total the aggregate amounts of all qualified production costs per qualified production and per qualified production per taxable year; (3) Provide a letter to the director of taxation specifying the amount of the tax credit per qualified production for each taxable year that a tax credit is claimed and the cumulative amount of the tax credit for all years claimed; [and] (4) Publish on its website the names of the qualified productions and the amount of tax credits certified per qualified production per filing year; and [(4)] (5) Submit a report to the legislature no later than twenty days prior to the convening of each regular session detailing the non-aggregated qualified production costs that form the basis of the tax credit claims and expenditures, itemized by taxpayer, in a redacted format to preserve the confidentiality of the taxpayers claiming the credit. Upon each determination required under this subsection, the department of business, economic development, and tourism shall issue a letter to the taxpayer, regarding the qualified production, specifying the qualified production costs and the tax credit amount qualified for in each taxable year a tax credit is claimed. The taxpayer for each qualified production shall file the letter with the taxpayer's tax return for the qualified production to the department of taxation. Notwithstanding the authority of the department of business, economic development, and tourism under this section, the director of taxation may audit and adjust the tax credit amount to conform to the information filed by the taxpayer." 3. By amending subsection (l) to read: "(l) The total amount of tax credits allowed under this section in any particular year shall be $50,000,000; however, if the total amount of credits applied for in any particular year exceeds the aggregate amount of credits allowed for that year under this section, the excess shall be treated as having been applied for in the subsequent year and shall be claimed in the subsequent year; provided that no excess shall be allowed to be claimed after December 31, [2025.] 2026." PART II SECTION 2. Section 235-12.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows: "(b) The amount of credit allowed for each eligible renewable energy technology system shall not exceed the applicable cap amount, which is determined as follows: (1) If the primary purpose of the solar energy system is to use energy from the sun to heat water for household use, then the cap amounts shall be: (A) [$2,250] $1,125 per system for single-family residential property; (B) [$350] $175 per unit per system for multi-family residential property; and (C) [$250,000] $125,000 per system for commercial property; (2) For all other solar energy systems, the cap amounts shall be: (A) [$5,000] $2,500 per system for single-family residential property; provided that if all or a portion of the system is used to fulfill the substitute renewable energy technology requirement pursuant to section 196-6.5(a)(3), the credit shall be reduced by thirty-five per cent of the actual system cost or [$2,250,] $1,125, whichever is less; (B) [$350] $175 per unit per system for multi-family residential property; and (C) [$500,000] $250,000 per system for commercial property; provided that the cap amount shall be $500,000 per system for commercial property used for an eligible community-based renewable energy project pursuant to 269-27.4; and (3) For all wind-powered energy systems, the cap amounts shall be: (A) [$1,500] $750 per system for single-family residential property; provided that if all or a portion of the system is used to fulfill the substitute renewable energy technology requirement pursuant to section 196-6.5(a)(3), the credit shall be reduced by twenty per cent of the actual system cost or [$1,500,] $750, whichever is less; (B) [$200] $100 per unit per system for multi-family residential property; and (C) [$500,000] $250,000 per system for commercial property[.]; provided that the cap amount shall be $500,000 per system for commercial property used for an eligible community-based renewable energy project pursuant to section 269-27.4." SECTION 3. Act 88, Session Laws of Hawaii 2006, as amended by Act 89, Session Laws of Hawaii 2013, as amended by Act 143, Session Laws of Hawaii 2017, is amended by amending section 4 to read as follows: "SECTION 4. This Act shall take effect on July 1, 2006; provided that: (1) Section 2 of this Act shall apply to qualified production costs incurred on or after July 1, 2006, and before January 1, [2026;] 2033; and (2) This Act shall be repealed on January 1, [2026,] 2033, and section 235-17, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day before the effective date of this Act." PART III SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 5. This Act shall take effect on July 1, 2050; provided that sections 1, 2, and 3 of this act shall apply to taxable years beginning after December 31, 2021. |
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