HI HB1456

Establishes a new income tax credit in Chapter 235, Hawaii Revised Statutes for individual and corporate taxpayers who install and place environmental sustainability projects in service during the taxable year.

Allows taxpayers to claim a tax credit for a percentage of actual project costs (percentage amount to be specified); credit is available for projects including agriculture, agroforestry, aquaculture, circular manufacturing, or renewable energy systems.

Requires taxpayers to comply with all state environmental and building regulations and provide evidence of quantifiable environmental benefits to qualify for the credit.

Permits unused tax credits to carry forward to subsequent years until exhausted; all credit claims must be filed within 12 months following the close of the taxable year or the right to claim is waived.

Excludes projects that have already claimed credits under section 235-12.5 from eligibility; establishes per-project and annual caps on total allowable credits (amounts to be specified).

Applies to taxable years beginning after December 31, 2024.