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The state said Wednesday it is accepting notifications from renewable fuel producers interested in cashing in on Hawaii’s new renewable fuels tax credit.
The Legislature and Gov. David Ige established a renewable fuels production tax credit in 2016. The credit allows producers of renewable fuels to claim a credit for a period of up to five consecutive years.
Qualifying feedstocks include biomass crops; agricultural residues; oil crops, including but not limited to algae, canola, jatropha, palm, soybean and sunflower; sugar and starch crops, including but not limited to sugar cane and cassava; grease and waste cooking oil; food wastes; municipal solid wastes and industrial wastes; water; and animal residues and wastes.
State taxpayers who are interested in claiming credit are required to submit a notice to the Department of Business, Economic Development and Tourism.
To qualify for the credit, taxpayers must produce at least 15 billion British thermal units (Btu) of renewable fuels per year. The credit is equal to 20 cents per 76,000 Btu of renewable fuels. The credit is capped annually at $3 million per taxpayer.
The forms and instructions are available at energy.hawaii.gov/developer-investor Opens in a new tab.
