Rein in state's solar tax credits

POSTED: 01:30 a.m. HST, Sep 10, 2012

~~<p>State legislators were warned in their past session that generous tax credits for installation of solar systems would reduce the state's revenue far beyond what had been expected but took no action to adjust them. The warning bells now are loud and clear: The Legislature should revisit the issue in its coming session in response to a forecast that the state's tax revenue would be crippled in its attempt at economic recovery.</p>
<p>The state Council on Revenues reported in May that the proposed 35 percent state income tax credit for homeowners and businesses that install photovoltaic systems would result in the loss of about $70 million in annual tax revenues, with the overall revenue growth forecast dropping from 7.5 percent two months earlier to 5.3 percent.</p>
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State legislators were warned in their past session that generous tax credits for installation of solar systems would reduce the state's revenue far beyond what had been expected but took no action to adjust them. The warning bells now are loud and clear: The Legislature should revisit the issue in its coming session in response to a forecast that the state's tax revenue would be crippled in its attempt at economic recovery.

The state Council on Revenues reported in May that the proposed 35 percent state income tax credit for homeowners and businesses that install photovoltaic systems would result in the loss of about $70 million in annual tax revenues, with the overall revenue growth forecast dropping from 7.5 percent two months earlier to 5.3 percent. Login for more...