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Bill

SB 2375

RELATING TO SUSTAINABLE AVIATION FUEL TAX CREDIT.

2026 Regular Session Introduced by Carol Fukunaga and 4 co-sponsors

Hawaii tax credit bill incentivizes sustainable aviation fuel production and use to reduce aviation emissions and support green fuel market development.

Referred to EIG/TRS/AEN, WAM.
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Bill Summary · SB 2375

Legislative bill overview

SB 2375 establishes a tax credit for producers and users of sustainable aviation fuel (SAF) in Hawaii. The bill incentivizes the development and consumption of lower-carbon aviation fuel alternatives through financial tax benefits. This represents Hawaii's effort to reduce aviation sector emissions while supporting emerging green fuel industries.

Why is this important

Aviation accounts for a significant portion of Hawaii's carbon emissions, and SAF is currently one of the most viable near-term tools to decarbonize commercial flight. Tax incentives can accelerate market adoption of SAF by improving its economics relative to conventional jet fuel. For Hawaii specifically, this could position the state as a leader in sustainable aviation while potentially attracting SAF production facilities and research.

Potential points of contention

  • Cost to state budget: Tax credits represent foregone revenue; the fiscal impact depends on credit structure, eligibility scope, and how much SAF adoption the credit actually spurs versus subsidizing fuel that would be purchased anyway
  • Credit design details: Uncertainty about whether credits apply to producers, consumers, or both; whether they're refundable or non-refundable; duration limits; and income phase-out provisions—details typically debated in committee
  • SAF market maturity: SAF is still significantly more expensive than conventional jet fuel; critics may argue subsidies should expire once the market matures, while supporters may contend long-term certainty is needed for industry investment

Compiled from official sources — confirm details with the bill’s official record.

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