S.B. 2574 Summary

• Establishes a temporary renewable fuels import tax credit allowing taxpayers to deduct costs for importing qualifying renewable fuels, with $1.00 per gallon for sustainable aviation fuel (SAF) used on flights originating from Hawaii and a specified rate for other renewable fuels meeting greenhouse gas reduction thresholds.

• Implements an annual $50,000,000 cap on renewable fuel import tax credits with proportional allocation among eligible taxpayers if claims exceed the limit, with unused credits carried over to the following year.

• Increases the renewable fuels production tax credit from 20 cents to 35 cents per 76,000 British thermal units of renewable fuels produced and sold in Hawaii, removing the previous $3,500,000 annual cap and raising it to $100,000,000.

• Requires taxpayers claiming credits to file independent third-party certified statements annually with the Hawaii state energy office documenting fuel quantities, greenhouse gas emissions, employee information, and facility locations, with reporting requirements to the governor and legislature.

• Expires the import tax credit provisions on January 1, 2036, while the production tax credit expansion applies to taxable years beginning after December 31, 2024.