Hawaiian governor signs Renewable Fuels Production Tax Credit into law

In Hawaii, in early July Gov. David Ige formally signed the Renewable Fuels Production Tax Credit, a long-awaited incentive for biofuels producers in the state. This move supports Hawaii’s commitment to generate 100 percent of its electricity from renewable energy resources by 2045.

Hawaii State Act 202 is a nonrefundable tax credit for the production of renewable fuels, including biodiesel, which will take effect in 2017 for five years. The annual dollar amount of the tax credit is equal to 20 cents per 76,000 Btu of renewable fuel (the equivalent of one gallon of ethanol). The tax credit is capped at $3 million per year.