HI HB389

Establishes a carbon sequestration tax credit under Hawaii income tax law allowing taxpayers to claim a credit per metric ton of qualified carbon oxide captured and permanently stored in secure geological storage.

Credit applies to carbon dioxide captured at industrial facilities or direct air capture facilities in Hawaii, but excludes carbon used as a tertiary injectant in oil or gas recovery projects.

Allows excess credits to carry forward to subsequent tax years if they exceed the taxpayer's income tax liability, with claims required to be filed within twelve months following the taxable year.

Requires the Department of Health to certify the amount of qualified carbon oxide captured and disposed, issue certificates to taxpayers within seven months of submission, and maintain records; Department of Taxation administers the credit and may audit certifications.

Effective date is July 1, 3000 (appears to be a placeholder date).