HI SB12

Restructures Hawaii's renewable energy income tax credit by replacing the previous system with differentiated credits based on energy property type (solar electricity, solar water heating, wind) and application (residential, commercial non-utility scale, or utility scale) effective for properties installed between January 1, 2013 and December 31, 2018.

Establishes declining tax credit percentages for solar electricity: 30% for installations through December 31, 2013, declining to 25% through December 31, 2014, then 20% for installations on or after January 1, 2015, each with a $12,500 cap per dwelling for residential use and $500,000 cap for commercial non-utility scale.

Creates utility-scale solar and wind credits of 8 cents and 1.5 cents per kilowatt hour respectively produced and sold during the first 120 months of operation, requiring Department of Business, Economic Development, and Tourism (DBEDT) certification and establishing annual aggregate caps ($6-13.5 million for solar; $2-10 million for wind depending on year).

Requires DBEDT to certify all tax credits before claiming, verify kilowatt hour production, and manage aggregate cap compliance; shifts basis calculation terminology from "actual cost" to "basis" consistent with Internal Revenue Code.

Allows independent power producers submitting utility agreements by March 31, 2013 to claim 2012 calendar year tax credits for properties placed in service after December 31, 2012.