STAND. COM. REP. NO. 548-22

Honolulu, Hawaii

, 2022

RE: H.B. No. 1809

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1809, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to establish a renewable fuels production tax credit.

Your Committee received testimony in support of this measure from the Hawaii State Energy Office; Pacific Biodiesel Technologies, LLC; 350Hawaii.org; Climate Protectors Hawai‘i; Hawai‘i Gas; Our Revolution Hawaii; Hawaii Clean Power Alliance; Recycle Hawaii and Clean the Pacific; and one individual. Your Committee received testimony in opposition to this measure from one individual. Your Committee received comments on this measure from the Department of Taxation, Department of Budget and Finance, Tax Foundation of Hawaii, Hawaii Forest Stewards, Life of the Land, Aloha Tree Alliance, and eight individuals.

Your Committee finds that this measure supports the State's goal of achieving one hundred percent renewable energy generation by 2045 by providing a tax incentive for taxpayers to produce renewable fuels. This measure establishes a system for qualifying for, verifying, and managing the tax credit in a transparent manner.

Your Committee has amended this measure by:

(1) Inserting language to ensure that each taxpayer shall not be eligible for more than a single ten-year credit period; and

(2) Making a technical, nonsubstantive amendment for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1809, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 1809, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

AARON LING JOHANSON, Chair