Bill > SB995

This bill establishes a comprehensive framework to promote renewable fuel production and sustainable aviation fuel in Hawaii, with a focus on reducing greenhouse gas emissions. The legislation introduces a new $1 per gallon tax credit for sustainable aviation fuel imported into the state, with specific requirements including lifecycle greenhouse gas emissions thresholds and detailed reporting obligations. The bill also significantly enhances the existing renewable fuels production tax credit by increasing the credit amount from 20 to 35 cents per British thermal unit, removing previous caps, and adding new incentives such as an extra $1 per gallon for sustainable aviation fuel and an additional credit for low lifecycle emissions renewable fuels. The tax credit program has graduated annual funding limits, starting at $5 million in 2025 and increasing to $50 million by 2029, with provisions to proportionally allocate credits if total claims exceed the annual limit. The legislation aims to support Hawaii's ambitious climate goals, including achieving 100% renewable portfolio standards by 2045, by creating economic incentives for local sustainable fuel production and reducing dependence on fossil fuels. The bill also requires detailed annual reporting by taxpayers and the Hawaii State Energy Office to track the impact and effectiveness of these tax credits.

Government Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=995&year=2026