HI SB774

Establishes a rental motor vehicle pollution assessment of $3 per day (or portion thereof) beginning January 1, 2022, increasing to $5 per day on January 1, 2025, and $10 per day on January 1, 2030, levied on lessors for each non-zero-emissions rental vehicle.

Exempts zero-emissions vehicles and car-sharing vehicles from the pollution assessment.

Creates an income tax credit for rental motor vehicle lessors operating more than 50 light duty passenger vehicles statewide, allowing them to claim credits equal to the pollution assessments paid in the previous year for purchasing electric charging infrastructure or electric rental vehicles.

Makes the tax credit refundable for taxpayers with no income tax liability, and requires claims to be filed within 12 months following the close of the taxable year.

Deposits pollution assessment revenues into the general fund and requires the Director of Taxation to establish forms and rules necessary to implement the tax credit program.