Hawaii lawmakers and Gov. Josh Green are scrambling to address a tax change that solar industry executives warn could imperil more than $400 million worth of active projects.
As part of a sweeping tax bill that passed in the final days of the state’s legislative session, lawmakers approved a reduction in tax credits for commercial-scale and rooftop solar systems, as well as other renewable projects. The bill sets a cap on the tax credits available each year, before ending the renewable credit entirely in 2030.
The cutbacks are part of a broader effort by Hawaii legislators to protect income tax cuts for residents without busting the state’s budget.
The reduction in solar tax credits, however, was written to apply retroactively to the start of 2026. That means projects that started development this year could face the loss of state tax credits that were baked already into their financing.
