Renewable Energy Technologies Income Tax Credit
The Hawaiʻi Renewable Energy Technologies Income Tax Credit (RETITC), has supported the deployment of renewable energy technologies across the state by providing eligible taxpayers with a state income tax credit for qualifying renewable energy systems. The credit has been a key driver of distributed renewable energy development, helping Hawaiʻi residents and businesses invest in clean energy technologies.
In 2026, the Hawai’i State Legislature passed SB 3125, which was signed into law as Act 24. Act 24 makes several changes to the REITC beginning with taxable years after December 31, 2026, including new eligibility requirements, certification provisions, aggregate credit limits, and a future sunset of the credit.
Executive Order 26-02
Executive Order 26-02, effectively preserves the solar tax credit changed by Act 24 for 2026. This action protects investment decisions made in the past few months and addresses concerns expressed by Hawaiʻi’s solar industry, while respecting the legislative changes for 2027 and beyond. The decision affirms Governor Green’s Executive Order 25-01, which
recognizes the fundamental importance of distributed solar to the state’s energy goals.
“Executive Order 26-02 recognizes the critical importance of maximizing distributed solar resources, particularly on Oʻahu,” said Chief Energy Officer Mark Glick. “It demonstrates the continued commitment of the Green administration to clean energy for Hawaiʻi and immediately resolves the most pressing concerns of solar installers and customers around Act 24. This immediate relief also provides the solar industry with an opening to design innovative proposals for the 2027 legislative session.”
Coming Soon!
HSEO remains committed to supporting the continued deployment of distributed renewable energy resources in Hawaiʻi and is actively working with the Department of Taxation (DOTAX) and other stakeholders to address implementation questions associated with Act 24.
Additional information, guidance, and filing instructions will be posted on this webpage as they are developed.
Because individual tax situations vary, taxpayers should consult their own tax advisors or qualified tax professionals.