"Act 61, Sessions Laws of Hawaii (SLH) 2020, amends the Renewable Energy Technologies Income Credit (RETITC) by repealing the RETITC for commercial projects with the total output capacity of five megawatts or greater for taxable years beginning after December 31, 2019 and provides grandfathering exceptions for commercial solar projects with a: (1) Total output capacity of five megawatts or greater if the project received a Public Utilities Commission (PUC) approval prior to December 31, 2019; and (2) Pumped hydroelectric energy storage system provided that the applicable project approval filings have been made to the PUC by December 31, 2021." (Schedule CR Instructions)
If you have installed and placed in service an eligible renewable energy technology system in Hawaii, you may be eligible to claim this credit. This credit can be claimed as a nonrefundable or refundable credit.
Reduced Credit
For solar energy systems, you must reduce the credit by 30% unless you meet the conditions outlined under "Full Credit" below.
Full Credit
If you are an individual taxpayer and meet any of the following requirements for solar and wind systems apply, you can claim the full credit as refundable (credit can increase refund).
- All your (and your spouse's) income is retirement income such as social security or pension distributions; or
- Your Hawaii adjusted gross income (AGI) is $20,000 or less ($40,000 if you are filing a joint return).
Irrevocable Election
A married couple that does not file jointly will only be able to make this election to the extent that they would be entitled if they would have filed a joint tax return. When the election is made, the tax credit is refundable and the election cannot be revoked. Amended returns may not be filed to change the tax credit from refundable to nonrefundable.
Total Output Capacity
Systems classified as “other solar energy system” must meet the total output capacity requirement to qualify for the credit unless an exception applies. The total output capacity requirements are listed below:
- Single-family residential property – 5 kilowatts per system
- Multi-family residential property – 0.360 kilowatts per unit per system
- Commercial property – 1,000 kilowatts per system