HB 2296 Summary

• Establishes a new renewable fuels import tax credit allowing taxpayers to claim credits for importing renewable fuel with lifecycle greenhouse gas emissions at least a specified percentage below fossil fuels, or $1.00 per gallon for sustainable aviation fuel consumed by flights originating from and within Hawaii.

• Creates a $50,000,000 annual cap on total renewable fuels import tax credits; excess credits above the cap are allocated proportionally among eligible taxpayers and may be carried forward one year if reduced.

• Updates the renewable fuels production tax credit by increasing the credit rate from 20 cents to 35 cents per 76,000 British thermal units, raising the annual cap from $20,000,000 to $100,000,000, and adding $1.00 per gallon credits for renewable fuels produced from locally-sourced feedstock and sustainable aviation fuel.

• Requires taxpayers claiming credits to file independent third-party certified statements with the Hawaii state energy office documenting fuel quantity, type, feedstock source, greenhouse gas emissions, and facility employment information; the Hawaii state energy office must issue certificates and report annually to the governor and legislature.

• Expires the import tax credit on January 1, 2036, and applies to taxable years beginning after December 31, 2024; the production credit remains available through existing credit period provisions.