Report Title:

Tax Credit; Ethanol

Description:

Creates a tax credit for retail stations for the installation of E-85 fueling facilities.  Effective 12/31/08.

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

A BILL FOR AN ACT

RELATING TO ETHANOL.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     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)  As used in this section "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.

(c)  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 and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on January 1, 2009.

INTRODUCED BY:

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