HB513 Summary

• Expands the renewable energy technologies tax credit under Hawaii Revised Statutes Section 235-12.5 to include battery storage systems added to existing solar energy systems.

• Allows taxpayers to claim a 35 percent tax credit on the actual cost of retrofitting existing solar energy systems with battery storage, capped at $500,000 per solar energy system, for taxable years beginning after December 31, 2025.

• Applies to both new solar energy systems integrated with battery storage and existing solar systems being retrofitted to include battery storage capability.

• Effective for taxable years beginning after December 31, 2025.

• Purpose is to incentivize battery storage adoption among Hawaii's approximately one-third of single-family homes with rooftop solar to improve energy reliability and grid resilience.