Hawaii Governor David Ige has signed the state’s Renewable Fuels Production Tax Credit into law. The bill is another mechanism the state is using to reach its goal of generating 100 percent of its electricity from renewable resources by 2045. Hawaii has the highest energy costs across America’s 50 states. Pacific Biodiesel Technologies President Robert King attended the formal signing, another positive step in the use and promotion of biodiesel in the state. Also this month the city of Maui eliminated its 9 cents per gallon biodiesel tax.
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. This news comes on the heels of improved biodiesel tax credits in the state of Iowa and as the industry fights for the extension of the federal $1 per gallon biodiesel credit to three years and for domestic producers only.
“This is an excellent incentive because it will encourage investors to fund renewable fuel production facilities in Hawaii, creating jobs and energy security while fighting climate change and reducing environmental damage,” said King. “We’ve been diligently working for the past six years to help pass this legislation.”
Pacific Biodiesel was recently awarded a sustainability certification by the Sustainable Biodiesel Alliance and is Hawaii’s only commercial biofuel producer.