Bill > HB1295

This bill requires all state and county agencies in Hawaii to leverage federal clean energy tax credits from the Inflation Reduction Act of 2022, specifically the "elective pay" or "direct pay" provisions, for purchasing and financing two key areas: capital improvement projects using clean energy technology and zero-emission vehicles, beginning July 1, 2025. The legislation addresses a historical limitation where tax-exempt entities like government agencies could not previously claim renewable energy tax credits, which were primarily accessible to private energy developers. By mandating the use of these federal tax credits, the bill aims to help state and county agencies reduce costs and expand clean energy adoption. However, agencies utilizing these federal tax credits will be ineligible for concurrent state tax credits for the same projects or vehicles. The bill is set to take effect on July 1, 2050, and does not impact rights, penalties, or proceedings that existed before its effective date.

Agriculture and Natural Resources, Budget and Finance, Government Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1295&year=2026