Ethanol Production Incentive

Ethanol producers may qualify for an income tax credit equal to 30% of production facility nameplate capacity between 500,000 and 15 million gallons per year. The facility must produce at least 75% of its nameplate capacity to receive the tax credit each year and may claim the tax credit for up to eight years. Qualifying ethanol production facilities must be in operation on or before January 1, 2017. Once the total nameplate capacities of all qualifying ethanol production facilities built within the state reaches 40 million gallons per year, credits are not allowed for new facilities. The total amount of all credits distributed across the state may not exceed $12 million in a given year. Additional restrictions apply. (Reference Hawaii Revised Statutes 235-110.3)