Printable Version

Expired, Repealed, and Archived Hawaii Incentives and Laws

The following is a list of expired, repealed, and archived incentives, laws, regulations, funding opportunities, or other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality.

Plug-In Electric Vehicle and Electric Vehicle Supply Equipment (EVSE) Rebates

Qualified Hawaii residents, businesses, government agencies, and non-profit agencies may apply for rebates for the purchase of plug-in hybrid and battery electric vehicles (EVs) and EVSE through the Hawaii EV Ready Rebate Program. EV rebates are 20% of the vehicle purchase price, up to $4,500, and are restricted to one EV per applicant. To be eligible, the Internal Revenue Service must have approved the EV for the Qualified Plug-in Electric Drive Motor Vehicle Credit, and the vehicle must be purchased in Hawaii on or after August 1, 2010. EVSE rebates are 30% of the charging system cost including installation, up to $500. EVSE must be purchased on or after August 1, 2010, and installed before the rebate program ends; EVSE product and installation requirements apply. Rebates are issued on a first come, first served basis. The Hawaii EV Ready Rebate Program will continue until January 30, 2012, or until funds are exhausted.

Business Investment Tax Credit

Through December 31, 2010, taxpayers making a high technology business investment are eligible for a tax credit the year in which the investment is made. A qualified high technology business is a business in which more than 50% of the activities are qualified research (75% of which is conducted in Hawaii) and in which more than 75% of the income (i.e., income from products sold from, manufactured or produced in Hawaii or from services performed in Hawaii) is derived from qualified research. Qualified research includes research that is related to non-fossil fuel energy-related technology. The tax credit is equal to a percentage of the investment made, up to the following maximums:

Tax credits may not exceed the amount of the investment or exceed 80% of the taxpayer's income tax liability in the year in which the credit is claimed. Credits may be carried over for up to four additional years.

(Reference Hawaii Revised Statutes 235-7.3, 235-109.5, and 235-110.9)

Electric Vehicle (EV) and Infrastructure Grants

The Hawaii Department of Business, Economic Development, and Tourism (Department) established the Hawaii Transportation Energy Transformation Grant Fund to provide grants through the EV Ready Grant Program for the acquisition of EVs, the installation of EV charging infrastructure, and the development of innovative programs or the coordination of activities that diversify transportation energy sources. The Department awarded $2.6 million in grants in 2011.

Energy-Efficient Vehicle Acquisition Requirements

Once the state has met its federal and state vehicle purchase mandates, state agencies are required to purchase the most fuel-efficient vehicles that meet the needs of their programs, provided that a life-cycle cost benefit analysis of vehicle purchases includes projected fuel costs. All state agency light-duty vehicle (LDV) procurements must contain at least 40% energy-efficient vehicles as part of their annual vehicle acquisition plans. For each subsequent fiscal year, the percentage of energy-efficient vehicles must be five percent higher than the previous year, until at least 75% of each covered fleet's newly purchased LDVs are energy-efficient vehicles. Exclusions and exemptions may apply.

Agencies may offset the purchase requirements for energy-efficient vehicles by successfully demonstrating percentage improvements in their overall LDV fleet fuel economy. Additionally, agencies that use biodiesel fuel may offset the vehicle purchase requirements of this section at the rate of one vehicle per 450 gallons of neat biodiesel (B100) fuel used. State agencies are also required to purchase alternative fuels and ethanol blended gasoline when available, evaluate a purchase preference for biodiesel blends, and promote efficient operation of vehicles. (Reference Hawaii Revised Statutes 103D-412 and 196-9)

Alcohol Fuel Tax Exemption

Alcohol fuel sold for consumption or use by the purchaser is exempt from state excise tax. For the purpose of this exemption, alcohol fuel is defined as neat biomass-derived alcohol liquid fuel or a mixture of petroleum-derived fuel and alcohol fuel consisting of at least 10% denatured biomass-derived alcohol that is used to fuel a motor vehicle. A producer, wholesaler, or retailer of alcohol fuels must pass any savings from this exemption on to the consumer. This exemption expires June 30, 2009. (Reference Hawaii Revised Statutes 237-27.1)

Alternative Fuel Refueling Infrastructure Tax Deduction

The state provides income tax deductions of $2,000 to $50,000, identical to the federal income tax deductions, for the installation of clean-fuel refueling property provided in the Energy Policy Act of 1992. For more information, please contact the Hawaii State Department of Taxation at (800) 222-3229 or see form N35 on the Department of Taxation Web site at www.state.hi.us/tax/tax.html. (Reference Hawaii Revised Statutes Section 235-2.3, US Code Chapter 26 Section 179A, House Resolution 4520, 2004)

Alternative Fuel Sales Tax Exemption

The following was repealed by House Bill 1665, 2004: Fuel blends that contain at least 10% alcohol fuel blended with petroleum fuel, and 100% alcohol fuel, are exempt from the 4% state excise tax on retail sales. (Reference Hawaii Revised Statutes Section 237-27.1)