HB 976 Hawaii House · 2026 Regular Session

RELATING TO RENEWABLE FUEL.

Summary

Amends the renewable fuels production tax credit by: increasing the tax credit rate; specifying that the credit may be claimed for fuels that meet certain lifecycle greenhouse gas emissions and product transportation emissions thresholds; adding credit values for low lifecycle emissions renewable fuels and sustainable aviation fuels produced; allowing a taxpayer who previously claimed a credit to claim another credit for taxable years beginning after 12/31/2024; amending the credit period to be for a maximum period of ten consecutive years beginning from the effective date of this Act; and amending the required information in the certified statement. Effective 7/1/3000. (HD2)

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Feb 2025

House Passage

Feb 2025

Senate Passage

Governor

Introduced Jan 21, 2025 Last action Dec 8, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

HB976_HD1 → HB976_HD2 · 8 edits

MODERATE

The bill was revised to remove a new tax credit for importing sustainable aviation fuel, focusing solely on amending the existing renewable fuels production tax credit. This change simplifies the legislation by eliminating the creation of a separate tax code section for imports and consolidating all incentives under the production credit framework.

Scope change

The bill's scope was narrowed by removing the establishment of a new 'Sustainable Aviation Fuel Import Tax Credit' and its associated reporting requirements, leaving only amendments to the existing production tax credit.

FISCAL

Eliminated the creation of a new $1 per gallon tax credit specifically for importing sustainable aviation fuel.

REQUIREMENT

Deleted the requirement for taxpayers to file a separate independent, third-party certified statement for imported sustainable aviation fuel.

DEFINITION

Removed the specific statutory definition for 'Sustainable aviation fuel' from the bill text.

Simplified the definition of 'Sustainable aviation fuel' to only require meeting ASTM International Standard D7566 or D1655, removing references to biomass or waste streams.

SCOPE

Changed the bill's stated purpose to focus exclusively on amending the renewable fuels production tax credit rather than establishing two separate credits.

TIMELINE

Removed the specific repeal date for the new import credit section (January 1, 2036) since the section no longer exists.

ELIGIBILITY

Updated the list of eligible feedstocks to include biogas, renewable natural gas, gaseous carbon dioxide, and renewable/zero carbon energy resources.

Added a requirement that renewable fuels must meet a lifecycle greenhouse gas emissions reduction threshold to qualify for the credit.

HB976 → HB976_HD1 · 7 edits

MODERATE

This bill revision significantly alters the renewable fuel tax credit structure by removing specific dollar caps on total credits and per-taxpayer limits, leaving those amounts blank for future legislative action. It also changes the effective date to July 1, 3000, while keeping the repeal date at 2036, and updates the Sustainable Aviation Fuel credit to an 'income tax credit' with a $1 per gallon rate. The revision clarifies that credits are based on lifecycle emissions and product transportation emissions, and it adds a new requirement to report employee residency data.

Scope change

The bill's scope regarding funding limits changed from fixed annual caps to undefined amounts, shifting the decision on total budget allocation to future legislation. The effective date was extended to July 1, 3000, drastically increasing the operational timeline of the program.

FISCAL

Removed specific dollar limits for the Renewable Fuels Production Tax Credit and the Sustainable Aviation Fuel Import Credit, replacing them with blank spaces to be filled by future legislation.

TIMELINE

Changed the effective date of the Act from December 31, 2024, to July 1, 3000, while maintaining the repeal date of January 1, 2036.

DEFINITION

Renamed the 'Sustainable Aviation Fuel Import Tax Credit' to 'Sustainable Aviation Fuel Import Income Tax Credit'.

REQUIREMENT

Updated reporting requirements for the Renewable Fuels Production Tax Credit to include the number of full-time and part-time employees and their states of residency for each facility.

Added a new provision requiring taxpayers to report the number of employees and their states of residency for renewable fuel facilities.

ELIGIBILITY

Clarified that the Renewable Fuels Production Tax Credit applies to fuels with lifecycle greenhouse gas emissions and product transportation emissions below certain thresholds.

TECHNICAL

Minor formatting changes including updating the bill header to 'HB976 HD1' and adjusting the House of Representatives section to 'H.D. 1'.

Floor votes

How they voted

This bill passed the House by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 14, 2025

Lower · Passed

Report adopted; referred to the committee(s) on FIN as amended in HD 2 with Representative(s) Pierick voting aye with reservations; Representative(s) Garcia, Muraoka voting no (2) and Representative(s) Cochran, Matayoshi, Poepoe, Ward excused (4).

lower

Feb 14, 2025

Committee

Reported from ECD (Stand. Com. Rep. No. 654) as amended in HD 2, recommending referral to FIN.

lower

Feb 12, 2025

Lower · Passed

The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 5 Ayes: Representative(s) Ilagan, Hussey, Holt, Tam, Templo; Ayes with reservations: none; Noes: none; and 2 Excused: Representative(s) Todd, Matsumoto.

lower

Feb 4, 2025

Committee

Reported from EEP (Stand. Com. Rep. No. 88) as amended in HD 1, recommending passage on Second Reading and referral to ECD.

lower

Jan 28, 2025

Lower · Passed

The committee on EEP recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 4 Ayes: Representative(s) Lowen, Perruso, Kahaloa, Kusch; Ayes with reservations: none; 0 Noes: none; and 2 Excused: Representative(s) Quinlan, Ward.

lower

Jan 23, 2025

Committee

Referred to EEP, ECD, FIN, referral sheet 3

lower

Jan 23, 2025

Introduced

Introduced and Pass First Reading.

lower

Jan 21, 2025

Introduced

Pending introduction.

lower

14 primary · 0 co-sponsors