Bill > HB1265

This bill establishes a new tax credit for businesses that use recycled or waste inputs in their operations, aimed at promoting sustainability and supporting the circular economy. The tax credit allows businesses to deduct a percentage of the cost of recycled materials used in their production processes, with different rates based on business location. Specifically, businesses can claim 10% of the cost of recycled inputs (up to $500,000) or 15% (up to $750,000) if located in a rural area. To qualify, the recycled inputs must be diverted from the waste stream, used as raw materials, and sourced from certified recycling facilities. Businesses must provide documentation, including invoices, receipts, and supplier certifications, to claim the credit. If the tax credit exceeds the business's tax liability, the excess can be carried forward to future years. The bill defines "recycled or waste inputs" as materials diverted from the waste stream, including post-consumer and post-industrial materials, and defines a "rural area" as an area outside a standard metropolitan statistical area or as designated by the department of business, economic development, and tourism. The tax credit will apply to taxable years beginning after December 31, 2025.

Agriculture and Natural Resources

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1265&year=2025