HI HB265

Establishes an income tax credit for grid-connected energy storage properties installed and placed in service in Hawaii between January 1, 2016 and December 31, 2026.

Allows taxpayers to claim either an investment credit (percentage of basis) or a utilization credit (cents per kilowatt-hour for up to 10 years), but not both.

Defines "grid-connected energy storage property" to include equipment that stores mechanical, chemical, or thermal energy from the grid or renewable sources for later use, provides grid ancillary services, or enables electric vehicle energy storage.

Permits excess credits to carry forward to subsequent years and allows taxpayers to elect a 30 percent reduction of credit amount in exchange for refundable treatment if credit exceeds tax liability.

Appropriates funds to the Department of Taxation for administration and requires annual reporting to the legislature on the number of properties claiming credit and total state cost by credit type.