APPLYING FOR THE TAX CREDIT

In June of 2022, Governor Ige signed HRS 235-110.32, which reinstates (with changes) the Renewable Fuels Production Tax Credit (RFPTC). 

To qualify, taxpayers are required to produce and sell at least 2.5 billion British Thermal Units (BTU) of renewable fuel per year and submit a completed lifecycle analysis demonstrating the renewable fuel’s lifecycle greenhouse gas emissions are less than fossil fuels.  

Please note that under HRS 235-110.32, any taxpayer that has been producing renewable fuels at a level of at least 2.5 billion BTU per year for more than ten consecutive years is ineligible to claim the tax credit.  

Qualifying renewable fuels producers seeking to claim the RFPTC for the 2023 tax year must submit the following to the Hawai‘i State Energy Office (HSEO): 

1. A written notification to HSEO at the beginning of the 2023 calendar year of their intention to begin production of renewable fuels for the 2023 tax year. Taxpayers are also required to file a notification with HSEO and the Department of Taxation within 30 days following the start of production. The same form (Notice of Intent/Notice to Start Production) may be used for both notification requirements.

2. A completed and certified Independent Third-Party Certification Statement (ITPCS) no later than January 30, 2024.

3. For each type of renewable fuel produced and sold, a completed and certified Lifecycle Analysis (LCA). Please refer to the LCA Guidance Sheet for more information. If proprietary software is used to determine life cycle greenhouse gas emissions, the applicant and/or independent third-party certifier must be able to supply the data inputs, assumptions, methodology, and calculations used to determine GHG emissions at each lifecycle stage.

Once completed, submit the forms and required documentation to: [email protected] with the subject heading “RFPTC – Credit Certificate forms”.

All documents should be submitted no later than January 30, 2024.

Upon timely receipt of all the required documents, HSEO will review and verify the information. If the requirements outlined in HRS 235-110.32 are met, HSEO shall provide the taxpayer a “Credit Certificate” to be filed with the taxpayer’s state tax return. Certificates are to be issued by March 1, 2024. 

Qualifying renewable fuels producers seeking to claim the RFPTC for the 2024 tax year must submit the following to HSEO: 

1. A written notification to HSEO at the beginning of the 2024 calendar year of their intention to begin production of renewable fuels for the 2024 tax year. Taxpayers are also required to file a notification with HSEO and the Department of Taxation within 30 days following the start of production. The same form (Notice of Intent/Notice to Start Production) may be used for both notification requirements.

2. A completed and certified Independent Third-Party Certification Statement (ITPCS) no later than January 30, 2025. (Updated form will be uploaded in the Fall of 2024.)

3. A completed and certified LCA for each renewable fuel produced no later than January 30, 2025. Please refer to The Hawai‘i State Energy Office’s (HSEO) LCA Guidance Sheet for more information If proprietary software is used to determine life cycle greenhouse gas emissions, the applicant and/or independent third-party certifier must be able to supply the data inputs, assumptions, methodology, and calculations used to determine GHG emissions at each lifecycle stage.

Once completed, submit the forms and required documentation to: [email protected] with the subject heading “RFPTC – Credit Certificate forms”.

All documents should be submitted no later than January 30, 2025.

Upon timely receipt of all the required documents, HSEO will review and verify the information. If the requirements outlined in HRS 235-110.32 are met, HSEO shall provide the taxpayer a “Credit Certificate” to be filed with the taxpayer’s state tax return. Certificates are to be issued by March 1, 2025.