Bill > HB1295

This bill requires all state and county agencies in Hawaii to leverage federal clean energy tax credits introduced by the Inflation Reduction Act of 2022, specifically using the "elective pay" or "direct pay" provisions. These provisions allow tax-exempt entities like government agencies to claim tax credits for clean energy investments, which was previously only available to private entities. Starting July 1, 2025, state and county agencies must use these federal tax credits when purchasing or financing two main types of projects: (1) capital improvement projects that use clean energy technology, as defined in existing Hawaii state law, and (2) zero-emission vehicles as defined by federal regulations. However, if an agency uses the federal elective pay option, they will not be eligible for additional state tax credits for the same project or vehicle. The bill aims to help government agencies expand clean energy investments and transition to more sustainable technologies by providing financial incentives. The bill is set to take effect on July 1, 2050, which seems unusually far in the future and might be a typographical error.

Agriculture and Natural Resources, Budget and Finance, Government Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1295&year=2025