HI SB623

Replaces the renewable energy technology systems tax credit with separate tax credits for solar energy property and wind energy property, effective for taxable years beginning after December 31, 2012.

Establishes tiered solar energy tax credits based on property type and capacity: 35% for water heating systems (capped at $2,500 for single-family, $500 per unit for multi-family, $250,000 for commercial); 30-15% for systems under 1 megawatt generating electricity (declining over time); and production credits of 8, 6, or 4 cents per kilowatt-hour for systems 1 megawatt or larger.

Provides 20% tax credit for wind energy property under 1 megawatt in output, with credit basis definition clarified to include accessories, energy storage, and installation costs but exclude structural repairs unrelated to system support.

Allows taxpayers to elect refundability of excess credits (with 30% reduction) or full refund eligibility for low-income individuals and those with income below $20,000 ($40,000 married filing jointly).

Requires annual joint reports from the Department of Taxation and Department of Business, Economic Development, and Tourism on tax credits claimed by technology and taxpayer type, plus a comprehensive study by December 31, 2017, on costs, benefits, and recommendations for continuing or modifying the tax credit program.