H.B. 976 - Renewable Fuels Production Tax Credit

• Increases the renewable fuels production tax credit rate from 20 cents to 35 cents per 76,000 British thermal units of renewable fuels sold for distribution in Hawaii.

• Adds new eligibility requirements that fuels must meet a 50% lifecycle greenhouse gas emissions reduction threshold compared to fossil fuels they replace, plus feedstock and product transportation emissions thresholds.

• Provides additional credit values of $1 per diesel gallon equivalent for low lifecycle emissions renewable fuels and $1 per gallon for sustainable aviation fuel production.

• Allows taxpayers who previously claimed the credit to claim another credit for taxable years beginning after December 31, 2024, and extends the credit period to a maximum of ten consecutive years from the effective date.

• Caps total annual tax credits at $20,000,000 for all eligible taxpayers, with no single taxpayer receiving more than 75% of the total allowed and sustainable aviation fuel credits capped at 50% of total credits in any year.