HI SB1172

Establishes a state income tax credit for energy storage properties that store electricity for site-specific customer needs or utility system use, with credit rates of 30% (2015-2017), 25% (2018-2020), 20% (2021-2023), and 15% (2024+) of property basis.

Requires energy storage properties to be advanced, grid-interactive systems capable of participating in utility demand response programs and providing ancillary services, with agreements entered into between June 30, 2015 and December 31, 2021.

Limits annual tax credit certifications to $20 million per year and restricts any single equipment manufacturer from receiving more than 40% of annual aggregate certifications.

Provides reduced credit amounts for smaller projects: 50% of applicable credit for 1-2 megawatt systems and 25% for 2-3 megawatt systems.

Requires the Department of Business, Economic Development, and Tourism to study and report to the legislature by 2019 on the tax credit's costs, benefits, and effectiveness in achieving state energy goals.