The state of Hawaii Tax Department late last week updated its tax guidance published earlier this month in an effort to clarify how state tax credits of up to $5,000 per solar system may be used by consumers. Sunetric executives, Department of Taxation and the Hawaii Solar Energy Association (HSEA) had been discussing the issue after language in the new tax guidance seemed to possibly contradict language in the previous tax guidance.

The new Tax Information Release (TIR) issued last Monday provides the clarity Sunetric and our customers were looking for. It is now very clear that we can operate as we have in the past, providing the most efficient and economical system design for our customers while continuing to remain in strict compliance with tax laws. Click here to view the amended TIR, which provides additional guidance and clear examples on the Department of Taxation’s interpretation of the term “system” for the purposes of the Renewable Energy Technologies Income Tax Credit.

The clarity gained in the revised TIR is another positive, progressive step towards a sustainable future for Hawaii.  The insights and efforts necessary to reach this result, from both the Hawaii solar industry and the Department of Taxation, should be applauded. Read HSEA’s response here.

Please feel free to contact Sunetric with any questions or for further clarification of this new ruling.