HI SB365

Establishes an energy storage tax credit deductible against net income tax liability for taxpayers who install and place energy storage property in service in Hawaii.

Credit amounts phase down over time: 30% of basis for property placed in service between June 30, 2017 and December 31, 2019; 26% for 2020; 22% for 2021; and 10% for 2022 and thereafter.

Allows taxpayers to elect to reduce the credit by 30% and receive a refund if the reduced amount exceeds their income tax liability, with minimum refund of $1.

Requires the Department of Taxation and Department of Business, Economic Development, and Tourism to submit annual reports on the number of properties claiming the credit, total cost to the State, and economic impact estimates.

Requires the Department of Business, Economic Development, and Tourism to complete a study by December 31, 2020 on the costs, benefits, and effectiveness of the credit in achieving Hawaii's energy goals, with recommendations on continuation or revision.