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Bill

Bill

SB 2027

RELATING TO SUSTAINABLE AVIATION FUEL TAX CREDIT.

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

Hawaii SB 2027 creates tax credits for sustainable aviation fuel production/use to reduce aviation emissions and promote renewable energy adoption in the state.

Referred to EIG/TRS/AEN, WAM.
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Bill Summary · SB 2027

Legislative bill overview

SB 2027 establishes a tax credit in Hawaii for the production or use of sustainable aviation fuel (SAF). The bill incentivizes the development of alternative fuels for aircraft by providing financial benefits to producers or consumers of SAF, aligning with Hawaii's renewable energy and decarbonization goals.

Why is this important

Aviation is a significant contributor to Hawaii's economy and carbon emissions. By creating tax incentives for SAF adoption, the bill aims to reduce the aviation sector's environmental footprint while potentially positioning Hawaii as a hub for sustainable fuel innovation and production. This could support both climate goals and economic development in the renewable energy sector.

Potential points of contention

  • Cost to state revenue: Tax credits represent foregone state income, and the fiscal impact depends on SAF uptake rates and credit structure—potentially significant if widely utilized
  • Definition and verification of SAF: Questions about how sustainable fuel qualifies, what environmental standards apply, and how compliance will be monitored to prevent misuse
  • Beneficiary distribution: Unclear whether credits primarily benefit large airlines/corporations versus smaller producers, and whether economic benefits will reach local communities or concentrate among major fuel suppliers

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

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