SB2766 SD2

THE SENATE	S.B. NO.	2766
TWENTY-FOURTH LEGISLATURE, 2008		S.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235‑ E-85 fueling facilities; income tax credit. (a) Any owner of a retail station as defined in section 486H-1, that files a net income tax return for a taxable year may claim a tax credit for the actual cost of the installation of E-85 fueling facilities. This credit shall be available for E-85 fueling facilities installed and placed in service in the State after December 31, 2008.

(b) The credit allowed under this section shall be claimed against net income tax liability for the taxable year. For the purpose of this tax credit, "net income tax" liability means net income tax liability reduced by all other credits allowed to the taxpayer under this chapter.

(c) If the tax credit claimed by the taxpayer under this section exceeds the amount of income tax payments due from the taxpayer, the excess credit may be carried forward until exhausted.

(d) Every claim, including amended claims, for the tax credit under this section shall be filed on or before the end of the twelfth month following the close of the taxable year for which the tax credit may be claimed. Failure to meet the filing requirements of this subsection shall constitute a waiver of the right to claim the tax credit.

(e) The director of taxation shall prepare any forms that may be necessary to claim a credit under this section. The director may also require the taxpayer to furnish information to ascertain the validity of the claims for credits made under this section.

(f) As used in this section:

"Actual cost of the installation" means the plans, design, construction, and materials necessary to put in place an E-85 fueling facility at a site.

"E-85" means a petroleum product that is a blend of denatured ethanol and gasoline that contains eighty-five per cent ethanol by volume or at a minimum seventy-five per cent ethanol by volume and which complies with the American Society for Testing and Materials specification D 5798-99, as amended."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2050.