SB 2478 Summary

• Reinstates a renewable fuels production tax credit that was repealed on December 31, 2021, to promote energy security in Hawaii.

• Provides a tax credit of 20 cents per 76,000 British thermal units of renewable fuels sold in the state, with a maximum annual credit of $3,500,000 per taxpayer and a 10-year credit period.

• Requires minimum annual renewable fuels production of at least 2.5 billion British thermal units and restricts credit to fuels with lifecycle emissions below fossil fuels.

• Establishes a $20,000,000 annual statewide cap on total credits, with excess claims prorated among eligible taxpayers based on production volume.

• Requires independent third-party certified annual reporting to the Hawaii State Energy Office detailing fuel production, type, quantity, feedstock, employees, and lifecycle emissions data.