Hawaii – Renewable Energy Exemption for Landlords and Lessors

SALT Report 2962 – The Hawaii Department of Taxation issued guidance regarding the passage of Senate Bill19, Laws 2013, which amended the definition of “public utility” to include landlords and lessors.  As a result, landlords or lessors who install renewable energy systems on their property and provide, sell, or transmit the power generated by those systems to an electric utility or to a lessee or tenant on the property may purchase these items exempt from tax.

However, landlords or lessors who qualify for this exemption are subject to the state’s general excise tax laws and are required to file returns and pay tax on the gross income received from the sale of power generated by the renewable energy systems.

For Further Information

Hawaii Department of Taxation – Announcement No. 2013-23

Hawaii State Legislature Senate Bill 19, Act 261, Laws of Hawaii 2013