HB 976 Hawaii House · 2025 Regular Session

RELATING TO RENEWABLE FUEL.

Summary

Amends the renewable fuels production tax credit by: increasing the tax credit rate; specifying that the credit may be claimed for fuels that meet certain lifecycle greenhouse gas emissions and product transportation emissions thresholds; adding credit values for low lifecycle emissions renewable fuels and sustainable aviation fuels produced; allowing a taxpayer who previously claimed a credit to claim another credit for taxable years beginning after 12/31/2024; amending the credit period to be for a maximum period of ten consecutive years beginning from the effective date of this Act; and amending the required information in the certified statement. Effective 7/1/3000. (HD2)

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 21, 2025 Last action Feb 14, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

HB976_HD1 → HB976_HD2 · 8 edits

MODERATE

This bill updates Hawaii's renewable fuels tax credit program to better support sustainable aviation fuel and other low-emission fuels. It increases the credit amount, removes the annual cap on total credits, and extends the credit period to ten years. The changes aim to make Hawaii's renewable fuel industry more competitive while meeting climate goals.

Scope change

The bill expands eligibility to include sustainable aviation fuel and low lifecycle emissions fuels, and removes the $3.5 million annual credit cap per taxpayer while introducing a new $20 million aggregate annual cap for all taxpayers.

FISCAL

Increased the base tax credit rate from 20 cents to 35 cents per 76,000 BTU of renewable fuel sold in the state.

Added new credit values of $1 per diesel gallon equivalent for low lifecycle emissions fuels and $1 per gallon for sustainable aviation fuel.

Removed the $3.5 million annual credit cap per taxpayer and introduced a new $20 million aggregate annual cap for all eligible taxpayers combined.

ELIGIBILITY

Extended the credit period from an unspecified duration to a maximum of ten consecutive years starting from the effective date of the Act.

Allowed taxpayers who previously claimed credits before the effective date to claim additional credits for taxable years beginning after December 31, 2024.

DEFINITION

Added new definitions for 'sustainable aviation fuel,' 'low lifecycle emissions renewable fuels,' and specific feedstock types including bio-intermediate ethanol and biogas.

REQUIREMENT

Updated the required information in the certified statement to include lifecycle greenhouse gas emissions data and employee residency information.

TIMELINE

Set the effective date to July 1, 3000 (likely a placeholder or error in the draft) and applied to taxable years beginning after December 31, 2024.

HB976 → HB976_HD1 · 10 edits

MAJOR

This bill establishes a new tax credit for importing sustainable aviation fuel and significantly expands the existing renewable fuels production tax credit. The changes aim to reduce Hawaii's dependence on imported fossil fuels by incentivizing local sustainable fuel production and supporting the aviation industry's transition to lower-carbon alternatives. Key modifications include creating a new $1 per gallon credit for sustainable aviation fuel imports, increasing the renewable fuels production tax credit rate from 20 to 35 cents per unit, and extending the credit period to ten years.

Scope change

The bill expands the scope from primarily focusing on renewable fuels production to explicitly including sustainable aviation fuel imports and production, with specific provisions for low lifecycle emissions fuels and sustainable aviation fuels.

FISCAL

New sustainable aviation fuel import income tax credit of $1 per gallon for fuel meeting lifecycle greenhouse gas emissions reduction thresholds.

Increased renewable fuels production tax credit rate from 20 cents to 35 cents per 76,000 British thermal units.

Additional credit values for low lifecycle emissions renewable fuels ($1 per diesel gallon equivalent) and sustainable aviation fuels ($1 per gallon).

ELIGIBILITY

Repealed the cap on claimable credits per taxpayer per taxable year and increased the cap on total claimable credits for all eligible taxpayers per calendar year.

Allowed taxpayers who previously claimed credits to claim another one for taxable years beginning after December 31, 2024.

TIMELINE

Extended credit period to a maximum of ten consecutive years beginning from the effective date of the Act.

Set effective date of July 1, 3000, with application to taxable years beginning after December 31, 2024, and section 2 repeal on January 1, 2036.

REQUIREMENT

Added new reporting requirements including feedstock information, lifecycle greenhouse gas emissions data, and employee information for facilities.

DEFINITION

Added comprehensive definitions for renewable feedstocks including biomass crops, agricultural residue, oil crops, sugar and starch crops, and various waste streams.

ENFORCEMENT

Added provisions for public inspection of collected information and requirements for written notice before importation begins.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 14, 2025

Committee

Report adopted; referred to the committee(s) on FIN as amended in HD 2 with Representative(s) Pierick voting aye with reservations; Representative(s) Garcia, Muraoka voting no (2) and Representative(s) Cochran, Matayoshi, Poepoe, Ward excused (4).

lower

Feb 14, 2025

Committee

Reported from ECD (Stand. Com. Rep. No. 654) as amended in HD 2, recommending referral to FIN.

lower

Feb 12, 2025

Lower · Passed

The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 5 Ayes: Representative(s) Ilagan, Hussey, Holt, Tam, Templo; Ayes with reservations: none; Noes: none; and 2 Excused: Representative(s) Todd, Matsumoto.

lower

Feb 4, 2025

Committee

Reported from EEP (Stand. Com. Rep. No. 88) as amended in HD 1, recommending passage on Second Reading and referral to ECD.

lower

Jan 28, 2025

Lower · Passed

The committee on EEP recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 4 Ayes: Representative(s) Lowen, Perruso, Kahaloa, Kusch; Ayes with reservations: none; 0 Noes: none; and 2 Excused: Representative(s) Quinlan, Ward.

lower

Jan 23, 2025

Committee

Referred to EEP, ECD, FIN, referral sheet 3

lower

Jan 23, 2025

Introduced

Introduced and Pass First Reading.

lower

Jan 21, 2025

Introduced

Pending introduction.

lower

14 primary · 0 co-sponsors