Green preserves 2026 solar tax credit

Published: Saturday, June 13, 2026 at 10:05 am

Governor Josh Green has signed an executive order aimed at preserving solar tax credits for projects initiated this year, effectively delaying the full impact of a recent legislative change until 2027. This move is intended to safeguard investment decisions made in recent months and address concerns from the state's solar industry, while still acknowledging the legislative adjustments slated for future years.

The executive order stems from Act 24, signed into law earlier this year, which sought to balance the state's budget by reducing tax credits across various sectors and offsetting significant anticipated revenue losses from federal sources. The legislation also involved reallocating funds from special accounts and vacant state positions.

The Renewable Energy Technologies Income Tax Credit, the largest and most costly of these tax credits, has been a significant program. Since 2015, it has distributed over $684 million to nearly 80,000 claimants. In the most recent full year of available data, over $100 million was disbursed to approximately 11,000 recipients. Act 24 also introduced a sunset clause for this credit, with the program set to conclude by January 2031.

Prior to the executive order, the legislation as written would have retroactively disqualified individuals earning over $175,000 and joint filers earning over $350,000 from claiming the credit. It also imposed a $40 million cap on allowable credits. The Hawaii Solar Energy Association had strongly opposed these provisions, particularly the potential jeopardy to projects already contracted under previous guidelines.

Under the new Executive Order 26-02, taxpayers who completed their solar projects or can demonstrate reliance on the prior tax credit guidelines before the May 21st legislative change will be eligible to claim their credits. This relief specifically addresses the $40 million cap, not the income limitations.

State officials have indicated that this action provides immediate relief and allows the solar industry time to develop proposals for the 2027 legislative session. The Hawaii Solar Energy Association has welcomed the executive order, emphasizing the crucial role of rooftop solar in mitigating rising electricity costs and enhancing grid resilience. This decision aligns with broader state goals to increase rooftop solar installations and accelerate the transition to renewable energy.

BNN's Perspective: Governor Green's executive order represents a pragmatic approach to balancing fiscal responsibility with the state's commitment to renewable energy. By providing a temporary reprieve for existing solar projects, the administration acknowledges the importance of industry stability and investor confidence. This measure allows for a more measured implementation of legislative changes, giving stakeholders time to adapt and fostering continued progress towards sustainability goals without abrupt disruption.

Tags: solar tax credit, Governor Josh Green, executive order, Act 24, renewable energy, Hawaii, tax credits, solar industry, budget, renewable energy technologies income tax credit, Hawaii Solar Energy Association, rooftop solar, electricity costs, sustainability, resilience

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