S.B. 361 - Energy Storage System Tax Credit

• Establishes an income tax credit for individual and corporate taxpayers who install eligible energy storage systems in Hawaii, applicable to taxable years beginning after December 31, 2017 through December 31, 2035.

• Tax credit percentages vary by system type (residential, multi-family, commercial, utility-scale) and range from 9% to 33% of actual installation costs, with lower-income residential filers receiving higher credit rates.

• Credit amounts are capped at $7,000 for residential and multi-family systems, $20,000 for commercial systems, and $500,000 for utility-scale systems co-sited with community-based renewable energy projects.

• Excess credits may be carried forward to subsequent tax years or refunded under specified conditions, including for taxpayers with adjusted gross income of $20,000 or less (single filers) or $40,000 or less (joint filers).

• Requires the Department of Business, Economic Development, and Tourism to study and annually report on the tax credit's usage, costs, and effectiveness in supporting Hawaii's renewable energy goals.