HI SB2197

Establishes a renewable fuels production tax credit for taxpayers producing qualifying renewable fuels at a minimum of 15 billion British thermal units per year, with credit amounts and annual caps to be specified by legislature.

Defines qualifying renewable fuels as fuels produced in Hawaii from renewable feedstocks (including biomass, agricultural waste, algae, cooking oil, municipal waste, and water) that meet ASTM International or industry specifications.

Limits the credit period to a maximum of five consecutive years beginning when a taxpayer starts qualifying renewable fuels production, with carryover provisions allowing unused credits to apply to subsequent years during the credit period.

Requires taxpayers to provide written notice before production begins and annual reports to the Department of Business, Economic Development, and Tourism on production amounts, fuel types, feedstocks used, and employment information.

Repeals the existing ethanol facility tax credit and makes the new renewable fuels credit available for taxable years beginning after December 31, 2014.