Hawaii Gov. David Ige Plans to Veto Ethanol Tax Credit Bill
by Duane Shimogawa (Pacific Business News) Hawaii Gov. David Ige said that he intends to veto a bill passed by the State Legislature that would repeal the ethanol facility tax credit and establish a renewable fuels production tax credit.
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Ige reasoned that he plans to veto the ethanol bill because it would be found unconstitutional.
“This measure is a violation of the U.S. Constitution’s Commerce Clause,” he said. “There is actually a state of Hawaii tax clause, where we tried to limit taxes and production [of ethanol] in Hawaii that was found unconstitutional.”
S.B. 349 establishes a five-year renewable fuels production tax credit, while repealing the ethanol tax credit. It also allows qualifying taxpayers to claim a refundable income tax credit on renewable fuel, capped at $3 million per year. READ MORE and MORE (KHON)