Bill Text: HI SB2434 | 2022 | Regular Session | Introduced
Bill Title: Relating To Taxation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-01-24 - Referred to EET, WAM. [SB2434 Detail]
Download: Hawaii-2022-SB2434-Introduced.html
THE SENATE |
S.B. NO. |
2434 |
THIRTY-FIRST LEGISLATURE, 2022 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to taxation.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§235- Renewable fuels production tax credit. (a) Each year during the credit period there shall
be allowed to each taxpayer subject to the taxes imposed by this chapter a renewable
fuels production tax credit that shall be applied to the taxpayer's net income tax
liability, if any, imposed by this chapter for the taxable year in which the credit
is properly claimed.
For each taxpayer producing renewable
fuels, the annual dollar amount of the renewable fuels production tax credit during
the ten-year credit period shall be equal to twenty cents per seventy-six thousand
British thermal units of renewable fuels using the lower heating value produced
for distribution in the State; provided that the taxpayer's production of renewable
fuels is not less than fifteen billion British thermal units of renewable fuels
per year; provided further that the amount of the tax credit claimed under this
section by a taxpayer shall not exceed $3,000,000 per taxable year. No other tax credit may be claimed under this chapter
for the costs related to renewable fuels production that are used to properly claim
a tax credit under this section for the taxable year.
(b) The department of business, economic development,
and tourism shall:
(1) Verify the amount
and type of renewable fuels produced, including the purpose for which the fuel was
produced;
(2) Total all renewable
fuels production that the department of business, economic development, and tourism
certifies for purposes of paragraph (3); and
(3) Certify the total
amount of the tax credit for each taxable year and the cumulative amount of the
tax credit during the credit period.
Upon each determination, the department
of business, economic development, and tourism shall issue a certificate to the
taxpayer verifying the amount of the renewable fuels produced, the credit amount
certified for each taxable year, and the cumulative amount of the tax credit during
the credit period. The taxpayer shall file
the certificate with the taxpayer's tax return with the department of taxation.
Notwithstanding the department of business,
economic development, and tourism's certification authority under this section,
the director of taxation may audit and adjust the certification to conform to the
facts.
If in any year, the annual amount
of certified credits reaches $6,000,000 in the aggregate, the department of business,
economic development, and tourism shall immediately discontinue certifying credits
and notify the department of taxation. In
no instance shall the total amount of certified credits exceed $6,000,000 per year.
Notwithstanding any other law to the contrary,
the verification and certification information compiled by the department of business,
economic development, and tourism shall be available for public inspection and dissemination
under chapter 92F.
(c) If the credit under this section exceeds the taxpayer's
net income tax liability, the excess of the credit over liability may be used as
a credit against the taxpayer's net income tax liability in subsequent years until
exhausted. All claims for a credit under
this section shall be properly filed on or before the end of the twelfth month following
the close of the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision
shall constitute a waiver of the right to claim the credit.
(d) Prior to production of any renewable fuels for
the year, the taxpayer shall provide written notice of the taxpayer's intention
to begin production of renewable fuels. The
information shall be provided to the department of taxation and the department of
business, economic development, and tourism on forms provided by the department
of business, economic development, and tourism, and shall include information on
the taxpayer, facility location, facility production capacity, anticipated production
start day, and taxpayer's contact information. Notwithstanding any other law to the contrary,
this taxpayer and facility information shall be available for public inspection
and dissemination under chapter 92F.
(e) The taxpayer shall provide written notice to the
director of taxation and the director of business, economic development, and tourism
within thirty days following the start of production. The notice shall include the production start date
and expected renewable fuels production for the next twelve months. Notwithstanding any other law to the contrary,
this production information shall be available for public inspection and dissemination
under chapter 92F.
(f) Each calendar year during the credit period, the
taxpayer shall provide information to the director of business, economic development,
and tourism on:
(1) The number of British
thermal units of renewable fuels produced and sold during the previous calendar
year;
(2) The type of fuels;
(3) Feedstocks used
for renewable fuels production;
(4) The number of employees
of the facility and each employee's state of residency; and
(5) The projected number
of British thermal units of renewable fuels production for the succeeding year.
(g) In the case of a partnership, S corporation, estate,
or trust, distribution and share of the renewable fuels production tax credit shall
be determined pursuant to section 704(b) of the Internal Revenue Code, with respect
to partner's distributive share.
(h) Following each year in which a credit under this
section has been claimed, the director of business, economic development, and tourism
shall submit a written report to the governor and legislature regarding the production
and sale of renewable fuels. The report shall
include:
(1) The number, location,
and production of renewable fuels production facilities in the State and outside
the State that have claimed a credit under this section;
(2) The total number
of British thermal units of renewable fuels, itemized by type of fuel produced and
sold during the previous year; and
(3) The projected number
of British thermal units of renewable fuels production for the succeeding year.
(i) The director of taxation shall prepare forms that may be necessary to claim a credit under this section. The director of taxation may require the taxpayer to furnish information to ascertain the validity of the claim for credit made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91.
(j) As used in this section:
"Credit period" means a
maximum period of ten consecutive years, beginning from the first taxable year in
which a taxpayer begins renewable fuels production at a level of at least fifteen
billion British thermal units of renewable fuels per year.
"Net income tax liability"
means income tax liability reduced by all other credits allowed under this chapter.
"Renewable feedstocks" means:
(1) Biomass crops;
(2) Agricultural residue;
(3) Oil crops, including
but not limited to algae, canola, jatropha, palm, soybean, and sunflower;
(4) Sugar and starch
crops, including but not limited to sugar cane and cassava;
(5) Other agricultural
crops;
(6) Grease and waste
cooking oil;
(7) Food wastes;
(8) Municipal solid
wastes and industrial wastes;
(9) Water; and
(10) Animal residues
and wastes that can be used to generate energy.
"Renewable fuels" means
fuels produced from renewable feedstocks; provided that:
(1) The fuels shall
be sold as a fuel; and
(2) The fuels meet the
relevant ASTM International specifications for the particular fuel or other industry
specification for the particular fuel or other industry specifications for liquid
or gaseous fuels, including but not limited to:
(A) Methanol,
ethanol, or other alcohols;
(B) Hydrogen;
(C) Biodiesel
or renewable diesel;
(D) Biogas;
(E) Other
biofuels; or
(F) Renewable
jet fuel or renewable gasoline."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect on July 1, 2022.
INTRODUCED BY: |
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Report Title:
Renewable Fuels Production; Income Tax Credit
Description:
Establishes a renewable fuels production tax credit.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.