HB 1637 Summary

• Authorizes counties to establish an optional program by ordinance allowing annual payments in lieu of real property taxes on land or improvements used to produce or store renewable energy sold to electric utilities.

• Requires any county ordinance to exempt renewable energy projects from one hundred percent of real property taxes and allows payment determination on a per megawatt nameplate AC capacity basis.

• Exempts renewable energy projects that sell electricity to not-for-profit utilities from making the in-lieu payment.

• Addresses concerns that unilaterally changed property tax classifications in Honolulu (from agricultural to industrial) resulted in tax bills hundreds of times higher, potentially jeopardizing the state's 2045 renewable energy goal and affecting ratepayers.

• Effective July 1, 2100.