Solar water tax break program dims

The county council is about to consider a bill to remove a tax break for property owners who install solar hot water panels on their property.

Bill 28, sponsored by Hilo Councilor Aaron Chung on the recommendation of the Real Estate Tax Review Working Group, is expected to come out when the council meets early next month.

The solar water tax credit is one of three tax programs that the working group recommended eliminating. A reclassification into small agricultural residential areas with an area of ​​less than 1 hectare that was not used for agriculture was carried out administratively.

The third program, which abolishes a tax exemption program known as the “non-speculative housing program”, is currently finding its way through the council.

The solar program, which started in 2008, offers a one-time credit of up to $ 300 in property taxes for those who install a solar water heater. This only applies to the retrofitting of existing houses, as solar hot water has to be installed in all new buildings since 2012.

“It was recommended (to be abolished) by the working group. In the past, this exemption was used as an incentive for people to use this type of water heating, but now, as the building code dictates, there is no need to offer an incentive, ”Chung said.

He said that if there was still a need to retrofit existing houses, for example, this could be discussed.

“If people, our experts, the people who work with it all the time, recommend removing it, at least we should bring it up for discussion,” Chung said.

The county will continue to refrain from evaluating the value of solar water improvements when applying property taxes, as will photovoltaic cells for electricity, which are not subject to a county tax credit.

For the current tax year, the tax credit was granted on 93 parcels, resulting in savings of $ 27,692.80 for attendees, said Keita Jo, assistant property tax administrator.

Solar installer John Collins of Grand Solar Inc. said the loss of the county’s tax credit, in addition to ever-decreasing discounts from the electricity company, could result in fewer people being hooked up to the low-energy solar water systems.

“In these troubled times of COVID-19, it makes no sense to me that we should reduce the discounts instead of helping people by increasing the discounts,” said Collins on Friday. “The net result is less affordable solar systems that continue to guarantee high electricity bills to people who cannot afford them and install fewer solar systems.

“They would think the county and Hawaiian Energy are aligned with the state’s goal of 100% renewable energy by 2045,” added Collins. “Come on, let’s all get on the same page.”

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