HI HB1410

Replaces the existing ethanol facility tax credit with a broader biofuel production facility tax credit covering ethanol, pyrolysis oil, renewable diesel, bio-gasoline, bio-jet fuel, and other ASTM-compliant liquid biofuels produced from agricultural feedstock.

Changes the tax credit calculation from a percentage of nameplate capacity to 30 cents per 115,000 British thermal units (BTUs) of biofuels produced, with a $3,000,000 annual cap per taxpayer and minimum facility capacity of 575 billion BTUs per year.

Removes the previous 15 million gallon per year facility capacity limitation, allowing larger-scale biofuel production facilities to qualify for the credit.

Requires qualifying facilities to commence construction on or after January 1, 2014, operate at least 75 percent of nameplate capacity, use at least 75 percent Hawaii-grown agricultural feedstock when available, and sell fuel in Hawaii.

Applies to taxable years beginning after December 31, 2014, and grants the Department of Business, Economic Development, and Tourism authority to increase the aggregate tax credit cap with reporting requirements to the legislature.