Bill > HB1695

This bill expands the renewable fuels production tax credit to encourage the development and use of sustainable fuels, particularly sustainable aviation fuel, in Hawaii, aiming to reduce greenhouse gas emissions from the transportation sector, which is the state's largest source of emissions. The credit, which applies to taxable years beginning after December 31, 2025, increases the incentive from 20 to 35 cents per unit of renewable fuel and introduces new requirements for fuels to qualify, including meeting specific lifecycle greenhouse gas emissions reduction thresholds and transportation emissions thresholds. It also adds an additional credit for low lifecycle emissions renewable fuels and a significant bonus credit for sustainable aviation fuel, recognizing its importance for decarbonizing air travel. The bill clarifies definitions for terms like "lifecycle greenhouse gas emissions" and "sustainable aviation fuel," and establishes a program cap of $20,000,000 annually for the total tax credits allowed, with provisions for allocating credits proportionally if claims exceed this cap. Taxpayers must provide detailed information about their production, feedstocks, and emissions to the Hawaii state energy office to claim the credit, and the credit period has been adjusted to begin on July 1, 2026.

Agriculture and Natural Resources, Budget and Finance, Transportation and Infrastructure

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1695&year=2026