HI HB1265

Creates a new tax credit for businesses that use recycled or waste inputs (post-consumer, post-industrial, or recovered materials) as raw materials in producing goods or services

Provides a 10% tax credit on the cost of recycled/waste inputs, capped at $500,000 per taxpayer per year

Increases the credit to 15% with a $750,000 annual cap for businesses with their principal place of business in a rural area

Unused credits may be carried forward to subsequent tax years until exhausted; claims must be filed within 12 months after the close of the taxable year

Applies to taxable years beginning after December 31, 2025