Bill > HB1694

This bill establishes a tax credit for businesses that distribute sustainable aviation fuel in Hawaii, aiming to reduce greenhouse gas emissions from the aviation sector. The credit starts at $1 per gallon of qualifying sustainable aviation fuel and can increase by 2 cents for every additional 1% reduction in lifecycle greenhouse gas emissions beyond a 50% reduction threshold compared to traditional fossil fuels, up to a maximum of $2 per gallon. "Lifecycle greenhouse gas emissions" refers to the total emissions associated with the fuel's production and use, calculated using a specific model from the U.S. Department of Energy. "Sustainable aviation fuel" is defined as liquid fuel derived from sustainable sources that meets certain industry standards. To claim the credit, taxpayers must submit a certified statement detailing the fuel's type, source, emissions, and employment information to the Department of Transportation, which will then issue a certificate for the taxpayer to file with their tax return. The total amount of credits available annually is capped at $20,000,000, with any excess credit amounts eligible for carryover to future years, though not beyond five years. The bill also mandates public disclosure of certain information related to the fuel distribution and credit claims, and it will apply to taxable years beginning after December 31, 2026, with the provisions set to expire on December 31, 2035.

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

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1694&year=2026