HI HB946

Establishes a carbon displacement tax credit for Hawaii taxpayers who produce local goods that replace equivalent imported products, reducing greenhouse gas emissions from long-distance transportation

Requires producers to obtain a carbon displacement certificate from the Department of Business, Economic Development, and Tourism (DBEDT), demonstrating that at least 50% of the product's value is added within the state

Credits are calculated using a standardized formula based on greenhouse gas emissions factors for importing equivalent products, with adjustments for transportation modes and supply chain variations

Recipients must submit annual reports verifying actual sales and displaced imports; DBEDT may conduct audits and impose penalties including credit repayment for false information

Appropriates an unspecified amount for fiscal years 2025-2026 and 2026-2027 for DBEDT to administer the program, effective for taxable years beginning after December 31, 2024