Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-12.5-01 - Definitions

Current through June, 2024
(a) As used in section
				235-12.5,
				HRS, and sections 18-235-12.5-01 through 18-235-12.5-05:
(1) "Actual cost" means the amounts incurred
				or paid for renewable energy technology systems under section
				235-12.5(a),
				HRS, including peripheral equipment ordinarily and necessarily required for
				system operation and installation. Actual cost shall not include any consumer
				incentive payments or premiums offered with the system, regardless of when such
				payment or premium is made to the customer, and shall not include any amount
				for which another credit is claimed under chapter
				235, HRS. Any amounts incurred or
				paid for the repair, construction, or reconstruction of a structure or building
				in conjunction with the installation and placing in service of a solar or wind
				energy system shall not constitute a part of actual cost for the purposes of
				section
				235-12.5,
				HRS.
(2) "Commercial property"
				means a property which cannot be properly characterized as residential or
				mixed-use property. A hotel, or any other place in which lodgings are regularly
				furnished to transients for consideration, in which all of the rooms,
				apartments, suites, or the like are occupied by a transient for less than one
				hundred eighty consecutive days for each letting will be considered commercial
				property to the extent of that use.
(3) "Installed and placed in service" means
				that the system is ready and available for its specific use. With respect to
				systems installed for residential property, all requirements will be completed
				and a system will be deemed to be installed and placed in service when:
(1) The actual cost has been incurred;
(2) all installation, including
				all related electrical work, has been completed; and
(3) any required requests for inspection of
				the installation has been received by the appropriate government agency.
				However, if the residential installation fails to pass all the required
				inspections the credit is properly claimed in the taxable year in which the
				system passes such inspection.
(4) "Mixed-use property" means a property on
				which at least one residence exists and commercial activity takes
				place.
(5) "Multi-family
				residential property" means a property on which more than one residence is
				located. The determination that property is multi-family residential property
				is fact specific, but in general and in the absence of other relevant facts to
				the contrary, multi-family residential property will be real property that is
				described in a recorded title and that has more than one mailing address or
				separate entrances to separate living areas. The following exceptions may
				apply:
(A) The Ohana House Exception: If a
				single property has two separate residences, each occupied by members of a
				family as defined in the Internal Revenue Code, section 267(b)(1), then each
				residence will be considered a separate single-family residential property if
				the system services both residences. Partners in a civil union will also be
				considered members of a family for the purpose of this exception; or
(B) The Directed Use Exception: If a system
				only services one residence on a multi-family residential property, then the
				system will be treated as servicing a single-family residential
				property.
(6) "Property"
				means a single, definable portion of real property located in the State as
				described in a title recorded with the Bureau of Conveyances or Land Court of
				the state of Hawaii and that the applicable law allows to be sold in fee simple
				separately from any other real property located in the State. For purposes of
				the Renewable Energy Technologies Income Tax Credit under section
				235-12.5,
				HRS, all such titled property in the State is to be characterized as
				commercial, residential, or a mix of the two (mixed-use). When special
				circumstances exist, the department, at its discretion, may determine whether
				an interest qualifies as a "property" for the purposes of the credit on a
				case-by-case basis.
(7) "Renewable
				energy technology system" means a new system that captures and converts a
				renewable source of energy, such as solar or wind energy, into a usable source
				of thermal or mechanical energy, electricity, or fuel.
(8) "Residence" means dwelling place or place
				of habitation, an abode.
(9)
				"Single-family residential property" means a property on which one residence is
				located.
(10) "Standard Test
				Conditions" means 25 degrees Celsius cell/module temperature, 1,000 watts per
				square meter (W/m2) irradiance, air mass 1.5(AM 1.5)
				spectrum.
(11) "Total output
				capacity" means the combined individual output capacities (maximum power) of
				all identifiable facilities, equipment, apparatus or the like that make up the
				renewable energy technology system installed and placed in service during a
				taxable year measured in kilowatts. The total output capacity of a solar energy
				system shall be calculated using the manufacturer's published specifications of
				the components of the solar energy system. Generally, for photovoltaic solar
				energy systems, total output capacity is the output capacity (maximum power) of
				each cell, module or panel at Standard Test Conditions in kilowatts multiplied
				by the number of cells, modules or panels installed and placed into service
				during a taxable year. The amount of energy actually produced is not relevant
				to calculating total output capacity.