HI HB2618

Establishes an income tax credit for grid-connected energy storage properties installed and placed in service in Hawaii between January 1, 2015 and December 31, 2025.

Allows taxpayers to claim either an investment credit (percentage of basis) or utilization credit (cents per kilowatt-hour), but not both, with different rates for properties placed in service before or after December 31, 2020.

Utilization credits may be claimed annually for the first ten taxable years a property is in service, with annual claims capped at the energy storage capacity multiplied by 365 days and the applicable rate per kilowatt-hour.

Permits taxpayers to elect to reduce the eligible credit amount by 30 percent and receive a refund of any excess over income tax liability owed (minimum $1).

Requires the Department of Taxation to report annually to the legislature on the number of properties claimed and total tax credit costs by type and refundability status.