HI Gov. to Veto Ethanol Tax Credit Bill

OAKHURST, N.J. (DTN) -- Hawaii Governor David Y. Ige on Monday, June 29, said he plans to veto Senate Bill 349, which would repeal the ethanol facility tax credit and establish a five-year renewable fuels production tax credit.

"We have been advised by our Attorney General that the definition of qualified taxpayers is flawed in that it does not allow for companies outside of Hawaii to be qualified," said Ige. "This potentially violates the Commerce Clause of the U.S. Constitution, and could subject our state to potential litigation."

The measure, which passed final reading in early May, would have also allowed qualifying taxpayers to claim a refundable income tax credit equal to 20 cents per 76,000 BTUs of qualifying renewable fuel, capped at $3 million per taxable year. The Department of Business, Economic and Tourism was tasked with certifying all tax credits and submitting a report regarding the production and sale of qualifying renewable fuels to the governor and legislature each year.

(BM/AG)