Bill > HB946

This bill establishes a carbon displacement tax credit program designed to incentivize local production of goods that can replace imported products, with the goal of reducing greenhouse gas emissions associated with long-distance transportation. Under the proposed legislation, taxpayers can apply to the Department of Business, Economic Development, and Tourism (DBEDT) for a certificate that allows them to claim a tax credit based on the carbon emissions avoided by producing goods locally instead of importing them. To qualify, businesses must demonstrate that their locally produced goods are substantially similar to imported products, at least 50% of the value is added within the state, and there is a reasonable expectation of reducing imported goods' market share. The tax credit amount will be calculated using a standardized formula that considers greenhouse gas emissions factors for transportation, accounting for different modes of transport and supply chain variations. The DBEDT will be responsible for reviewing applications, issuing certificates, establishing calculation methods, conducting periodic audits, and submitting annual reports to the legislature about the program's performance. Businesses must apply within twelve months of the tax year, and credits that exceed current tax liability can be carried forward to subsequent years. The bill includes provisions for penalties if businesses submit false information and requires annual reporting to verify actual market displacement and emissions reductions.

Agriculture and Natural Resources

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=946&year=2026