HI lawmakers move to decrease solar tax credits

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HONOLULU (AP) — The solar industry has been booming in Hawaii, but state officials worry the industry's tax credits are draining state coffers.

Representatives in the House committee on the environment voted Wednesday to gradually decrease solar energy tax credits to 15 percent by 2018.

They cast aside the governor's more drastic proposal to cut the current tax credit to 15 percent by next year. The credit is currently 35 percent of the cost of each solar energy system.

Many environmental groups and solar companies say a sharp cut would cripple the renewable energy industry. Several support a gradual decrease.

Senators are expected to make a decision on the issue next week.

Gov. Neil Abercrombie said in his 2013 State of the State address that the current credit is fiscally unsustainable.

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