Bill > SB2376

This bill expands the renewable fuels production tax credit by modifying existing provisions related to the credit amount, eligibility, reporting requirements, and the definition of renewable fuels. Specifically, it adjusts the credit amount to be a certain number of cents per British thermal unit (BTU) of renewable fuels sold in the state, with a cap on the total credit a single taxpayer can claim per year, and requires that the fuels have "low lifecycle emissions," meaning they meet specific thresholds for greenhouse gas emissions from production and transportation compared to fossil fuels. Taxpayers must now submit a certified statement to the Hawaii state energy office detailing fuel production, feedstock, emissions data (including comparisons to US Treasury data if different), and employee information, and the energy office will issue a certificate confirming eligibility and credit amounts. The overall annual cap for all taxpayers remains $20,000,000, with provisions for allocating excess claims and allowing certain credits to be carried over to the next year. The "credit period," the duration for which a taxpayer can claim the credit, is redefined to begin on July 1, 2026, and while a taxpayer can generally only claim the credit for one ten-year period, those who previously claimed it before January 1, 2027, may be eligible for another period. The bill also broadens the definition of "renewable feedstocks" to include a wider range of waste materials and introduces new terms like "feedstock transportation emissions threshold" and "product transportation emissions threshold" to define what constitutes "low lifecycle emissions renewable fuels." This legislation is set to take effect on July 1, 3000, and applies to taxable years beginning after December 31, 2025.