City and County of Honolulu - Real Property Tax Exemption for Renewable Energy Property

October 25, 2024

Summary

In September 2009, the Honolulu City Council unanimously passed Bill 58 to create a real property tax exemption for alternative energy improvements. This bill became effective October 1, 2009. Honolulu later amended it.

The renewable energy property installed on a building, property, or land is exempt from real property taxes. Additionally, the portions of land actually used for the active production or storage of renewable energy is exempt from 80% of its value for tax purposes if the energy is primarily for use, distribution, or sale to public utilities or for public consumption under a power purchase agreement or power purchase contract with the utility. The claim for exemption, once allowed, will continue for the period of the power purchase agreements or contract with the utility.

Program Overview

Implementing Sector:	Local
Category:	Financial Incentive
State:	Hawaii
Incentive Type:	Property Tax Incentive
Web Site:	https://energy.hawaii.gov/what-we-do/financial-assistance-and-grants/financial-assistance-resources/income-guidelines-and-tax-resources/
Administrator:	City and County of Honolulu, Real Property Tax Assessment Division
Start Date:	10/1/2009
Eligible Renewable/Other Technologies:	Solar Water Heat Solar Thermal Electric Solar Photovoltaics Wind (All) Biomass Municipal Solid Waste Combined Heat & Power Landfill Gas Tidal Wave Solar Pool Heating Wind (Small) Anaerobic Digestion
Incentive Amount:	100% exemption from real property taxes 80% exemption for any land on which the renewable energy property is installed.

Authorities

Name:	Honolulu City Council Bill 58
Effective Date:	10/1/2009

Name:	Revised Ordinances of Honolulu 8-10.12
Effective Date:	10/1/2009

Contact

Name:	Information
Organization:	City and County of Honolulu Department of Bud
Address:	842 Bethel St. Honolulu HI 96813
Phone:	(808) 768-3799

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.