Expired, Repealed, and Archived Hawaii Incentives and Laws
The following is a list of expired, repealed, and archived incentives, laws, regulations, funding opportunities, or other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality.
The Hawaii Senate requests that the Hawaii Department of Transportation adopt rules to encourage the use of high-efficiency vehicles, including hybrid electric vehicles, for taxis at Honolulu International Airport. The Hawaii Senate requests that the rules include incentives such as the establishment of a separate taxi stand for high-efficiency vehicles. (Reference Senate Resolution 144, 2013)
Ethanol producers may qualify for an income tax credit equal to 30% of production facility nameplate capacity between 500,000 and 15 million gallons per year. The facility must produce at least 75% of its nameplate capacity to receive the tax credit each year and may claim the tax credit for up to eight years. Qualifying ethanol production facilities must be in operation on or before January 1, 2017. Once the total nameplate capacities of all qualifying ethanol production facilities built within the state reaches 40 million gallons per year, credits are not allowed for new facilities. The total amount of all credits distributed across the state may not exceed $12 million in a given year. Additional restrictions apply. (Reference Hawaii Revised Statutes 235-110.3)
The following was repealed by Senate Bill 717, 2015: At least 85% of gasoline supplied to a retailer or sold in Hawaii must contain a minimum of 10% ethanol (E10), unless the Director determines that sufficient quantities of competitively-priced ethanol are not available or that compliance would cause undue hardship. Gasoline blended with an ethanol-based product, such as ethyl tertiary butyl ether, is considered to be in conformance with this requirement. Retail fuel distributors must meet this requirement and report on a monthly basis to the Hawaii Energy, Resources, and Technology Division of the Department of Business, Economic Development, and Tourism. This requirement is repealed effective December 31, 2015. (Reference Senate Bill 717, 2015, Hawaii Revised Statutes 486J-10, and Hawaii Administrative Rules Title 15, Chapter 35)
The Hawaii Department of Business, Economic Development and Tourism (Department) conducted a study on the conditions and policies needed to expand biofuel production in Hawaii with the goal of displacing a significant amount of petroleum-based fuel. The Department submitted a preliminary report in December 2011 and issued a final report in December 2012. For more information, see the Department's 2011 preliminary report and 2012 final report. (Reference Hawaii Acts 203, 2011)
To achieve Hawaii's transportation efficiency goals and to create jobs, foster economic growth, and reduce greenhouse gas emissions, the Hawaii Senate encourages the promotion of PEV use in the state. As a first step, PEV charging infrastructure must be developed. In addition, stakeholders should work together to expedite the use of PEVs in Hawaii. Additionally, the Hawaii House of Representatives urges the Hawaii Clean Energy Initiative End-Use Efficiency Work Group to address the challenges related to PEV charging stations and access to electrical outlets to facilitate the use of PEVs. (Reference House Concurrent Resolution 230, 2010, and Senate Concurrent Resolution 126, 2009)
Qualified Hawaii residents, businesses, government agencies, and non-profit agencies may apply for rebates for the purchase of PEVs and EVSE through Hawaii's EV Ready Rebate Program (Program). PEV rebates are 20% of the vehicle purchase price, up to $4,500, and are restricted to one PEV per applicant. To qualify, the PEV must be included in the list of U.S. Internal Revenue Service-approved vehicles for the Qualified Plug-in Electric Drive Motor Vehicle Credit and be purchased in Hawaii on or after August 1, 2010. EVSE rebates are 30% of the charging system cost including installation, up to $500. EVSE must be purchased on or after August 1, 2010, and installed before the rebate program ends; EVSE product and installation requirements apply. Rebates are issued on a first-come, first-served basis. The Program will continue until November 1, 2012, or until funds are exhausted. For more information, see the Program website.
Through December 31, 2010, taxpayers making a high technology business investment are eligible for a tax credit the year in which the investment is made. A qualified high technology business is a business in which more than 50% of the activities are qualified research (75% of which is conducted in Hawaii) and in which more than 75% of the income (i.e., income from products sold from, manufactured or produced in Hawaii or from services performed in Hawaii) is derived from qualified research. Qualified research includes research that is related to non-fossil fuel energy-related technology. The tax credit is equal to a percentage of the investment made, up to the following maximums:
|Year||Tax Credit (% of
| Maximum Value
|Year of Investment||$700,000|
|1st Year Following Investment||25%||$500,000|
|2nd Year Following Investment||20%||$400,000|
|3rd Year Following Investment||10%||$200,000|
|4th Year Following Investment||10%||$200,000|
Tax credits may not exceed the amount of the investment or exceed 80% of the taxpayer's income tax liability in the year in which the credit is claimed. Credits may be carried over for up to four additional years.
(Reference Hawaii Revised Statutes 235-7.3, 235-109.5, and 235-110.9)
The Hawaii Department of Business, Economic Development, and Tourism (Department) established the Hawaii Transportation Energy Transformation Grant Fund to provide grants through the EV Ready Grant Program for the acquisition of EVs, the installation of EV charging infrastructure, and the development of innovative programs or the coordination of activities that diversify transportation energy sources. The Department awarded $2.6 million in grants in 2011.
Once the state has met its federal and state vehicle purchase mandates, state agencies are required to purchase the most fuel-efficient vehicles that meet the needs of their programs, provided that a life-cycle cost benefit analysis of vehicle purchases includes projected fuel costs. All state agency light-duty vehicle (LDV) procurements must contain at least 40% energy-efficient vehicles as part of their annual vehicle acquisition plans. For each subsequent fiscal year, the percentage of energy-efficient vehicles must be five percent higher than the previous year, until at least 75% of each covered fleet's newly purchased LDVs are energy-efficient vehicles. Exclusions and exemptions may apply.
Agencies may offset the purchase requirements for energy-efficient vehicles by successfully demonstrating percentage improvements in their overall LDV fleet fuel economy. Additionally, agencies that use biodiesel fuel may offset the vehicle purchase requirements of this section at the rate of one vehicle per 450 gallons of neat biodiesel (B100) fuel used. State agencies are also required to purchase alternative fuels and ethanol blended gasoline when available, evaluate a purchase preference for biodiesel blends, and promote efficient operation of vehicles. (Reference Hawaii Revised Statutes 103D-412 and 196-9)
Alcohol fuel sold for consumption or use by the purchaser is exempt from state excise tax. For the purpose of this exemption, alcohol fuel is defined as neat biomass-derived alcohol liquid fuel or a mixture of petroleum-derived fuel and alcohol fuel consisting of at least 10% denatured biomass-derived alcohol that is used to fuel a motor vehicle. A producer, wholesaler, or retailer of alcohol fuels must pass any savings from this exemption on to the consumer. This exemption expires June 30, 2009. (Reference Hawaii Revised Statutes 237-27.1)
The state provides income tax deductions of $2,000 to $50,000, identical to the federal income tax deductions, for the installation of clean-fuel refueling property provided in the Energy Policy Act of 1992. For more information, please contact the Hawaii State Department of Taxation at (800) 222-3229 or see form N35 on the Department of Taxation Web site at www.state.hi.us/tax/tax.html. (Reference Hawaii Revised Statutes Section 235-2.3, US Code Chapter 26 Section 179A, House Resolution 4520, 2004)
The following was repealed by House Bill 1665, 2004: Fuel blends that contain at least 10% alcohol fuel blended with petroleum fuel, and 100% alcohol fuel, are exempt from the 4% state excise tax on retail sales. (Reference Hawaii Revised Statutes Section 237-27.1)