Bill > HB976

This bill aims to advance Hawaii's commitment to reducing greenhouse gas emissions by establishing a new sustainable aviation fuel import income tax credit and amending the existing renewable fuels production tax credit. The bill increases the tax credit rate from 20 to 35 cents per 76,000 British thermal units of renewable fuels and adds additional credit values for low-lifecycle emissions and sustainable aviation fuels. Key provisions include allowing taxpayers who previously claimed credits to claim another credit after December 31, 2024, limiting the credit period to a maximum of ten consecutive years, and implementing more stringent requirements for lifecycle greenhouse gas emissions and product transportation emissions. The bill introduces specific reporting requirements for taxpayers, mandating detailed submissions to the Hawaii State Energy Office about fuel importation, production, emissions, and workforce data. It also sets annual caps on total tax credits and provides mechanisms for taxpayers to carry over unused credits. The legislation is designed to support local sustainable fuel production, create jobs, and reduce Hawaii's dependence on fossil fuels, with a specific focus on the aviation sector, which consumes approximately 17 million barrels of jet fuel annually in the state.

Agriculture and Natural Resources, Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=976&year=2026