HI HB1694

Establishes a tax credit of $1 per gallon for sustainable aviation fuel distributed in Hawaii, with an additional 2 cents per gallon for each 1% reduction in carbon dioxide emissions beyond the 50% lifecycle greenhouse gas emissions reduction threshold, up to a maximum of $2 per gallon.

Caps total annual tax credits at $20,000,000 for all eligible taxpayers combined, with proportional allocation if claims exceed the cap.

Requires taxpayers to file independent, third-party certified statements with the Department of Transportation documenting fuel quantities, production sources, emissions data, and facility information within 45 days of each calendar year's close.

Allows unused credits to be carried forward for up to five taxable years if credits exceed the taxpayer's net income tax liability.

Applies to taxable years beginning after December 31, 2026, and sunsets on December 31, 2035.