HI SB2027

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

Caps total annual tax credits at $20,000,000 across all eligible taxpayers, with unused credits carried forward to the subsequent calendar year.

Requires taxpayers to submit independent, third-party certified statements to the Department of Transportation detailing fuel type, quantity, feedstock, emissions data, and facility information.

Applies to taxable years beginning after December 31, 2025, and automatically repeals on December 31, 2035.

Allows excess credits to be carried forward for up to five taxable years and mandates annual reporting by the Director of Transportation to the governor and legislature on sustainable aviation fuel distribution.