Hawaii · Energy · HI-RETITC-001
Renewable Energy Technologies Income Tax Credit
Publication revised September 24, 2026. Sourcebook page 89.
Credit amount / calculation
2026 percentage/caps depend on technology; statutory changes take effect after 2026.
Business fit and eligible activity
Businesses installing qualifying solar or wind systems may claim the state energy credit; woody biomass is not included merely because it is renewable. Qualifying production, feedstock or energy technology; ordinary wood residuals are not automatically eligible.
Eligibility and practical use
This is a specialized credit, but the dollar value can be large when a mill or residuals business is actually developing qualifying energy infrastructure or fuel production. A biomass boiler, combined heat and power project, residuals conversion line, or fuel project should be tested against the exact statutory feedstock and emissions rules rather than the ordinary meaning of "renewable." Page
Illustrative business benefit
Use-of-credit illustration, not an estimated award: assume the agency or completed tax form establishes a $1,000 credit for the qualifying activity described above. If sufficient eligible tax is due, a $1,000 credit available for current use reduces that tax by $1,000. If annual limits allow only $600, that is this year's saving; the other $400 survives only if the carryforward or transfer rules permit. Obtain the actual program calculation before estimating a project benefit.
Timing / first action
Tax-year claim: document the eligible expense, hire or placed-in-service date and meet any separate certification deadline. Verify the technology, ownership, feedstock, emissions, and registration requirements before treating the project as credit-eligible.
Official sources
Related programs
Tax Credit for Research Activities
$5 million statewide cap and certification window
Qualified high-technology businesses conducting Hawaii research may receive a refundable credit; ordinary wood businesses may not meet the QHTB definition.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based
Alternative to the investment credit for owners/operators of qualifying clean-electricity facilities; potentially relevant to qualifying on-site generation.
Clean Fuel Production Credit (Internal Revenue Code §45Z)
Per-gallon or gallon-equivalent credit based on the
Potentially relevant only if a forest-products business actually produces qualifying transportation fuel.