Bill > SB2403

This bill expands the renewable fuels production tax credit to encourage the development and use of cleaner energy sources in Hawaii, particularly in the transportation sector which is the largest contributor to the state's greenhouse gas emissions. The credit, which is a financial incentive applied to a taxpayer's income tax liability, is increased from 20 to 35 cents per unit of renewable fuel sold, with additional credits available for fuels that meet specific environmental standards, such as low lifecycle greenhouse gas emissions and sustainable aviation fuel (SAF). SAF is a type of liquid fuel derived from renewable sources that can be used in airplanes without requiring changes to aircraft or infrastructure, and it is currently much more expensive than traditional jet fuel. The bill also clarifies definitions for terms like "lifecycle greenhouse gas emissions" and "renewable feedstocks," which include a wider range of organic materials and waste products. To claim the credit, taxpayers must meet certain production thresholds, provide detailed reports on their fuel production and emissions to the Hawaii state energy office, and adhere to program caps on the total amount of credits issued annually, which is set at $20,000,000. The changes are intended to support local agriculture, create jobs, reduce emissions, and enhance energy resilience, with the new provisions taking effect on July 1, 2026.

Government Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=2403&year=2026