HB1295 • 2026

RELATING TO CLEAN ENERGY.

Energy Taxes Technology

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: YAMASHITA
Last action: 2026-04-02
Official status: Received notice of the discharge of all House Conferees (Hse. Com. No. 457).
Effective date: Not listed

Plain English Breakdown

The bill text does not specify the exact amount of funding available through these tax credits for clean energy projects.

Clean Energy Act

This act requires state and county agencies to use federal clean energy tax credits from the Inflation Reduction Act of 2022 for buying and financing projects that use renewable energy technology and zero-emission vehicles.

What This Bill Does

Requires all state and county agencies to utilize applicable federal clean energy tax credits, pursuant to the Inflation Reduction Act of 2022, for the purchase or financing of capital improvement projects using clean energy technology.
Includes the purchase or financing of zero-emission vehicles in the requirements.

Who It Names or Affects

State agencies
County agencies

Terms To Know

Clean energy technology: Technology that generates electricity or other forms of power without using fossil fuels, such as solar panels and wind turbines.
Zero-emission vehicles: Vehicles that do not produce any exhaust emissions from the tailpipe, like electric cars.

Limits and Unknowns

The act only applies to state and county agencies and does not affect private companies or individuals.
It is unclear how much funding will be available through these tax credits for clean energy projects.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: This amendment requires state and county agencies to use federal clean energy tax credits, known as 'direct pay', for buying or financing renewable energy projects and zero-emission vehicles starting July 1, 2025.

State and county agencies must use federal clean energy tax credits (called 'direct pay') when purchasing or financing capital improvement projects that use clean energy technology.
The same applies to the purchase of zero-emission vehicles.

The amendment specifies an effective date of July 1, 3000, which seems incorrect and likely needs correction in future versions.

HD2

Hawaii published version HD2

Plain English: This amendment requires state and county agencies to use federal clean energy tax credits, known as 'direct pay', for purchasing or financing renewable energy projects and zero-emission vehicles starting July 1, 2025.

State and county agencies must use federal clean energy tax credits (elective pay/direct pay) for capital improvement projects that use clean energy technology and for buying zero-emission vehicles.
Agencies cannot claim state tax credits if they use the federal direct pay option.

The amendment's effective date of July 1, 3000 is likely a placeholder or error since it does not make sense in context.

SD1

Hawaii published version SD1

State and county agencies must use federal clean energy tax credits (elective pay/direct pay) for capital improvement projects that utilize clean energy technology and for the purchase of zero-emission vehicles.
Agencies cannot claim state tax credits if they use federal tax credits for the same project or vehicle.

The amendment specifies a future effective date (July 1, 2050), which is far in the future and may change before it takes effect.
Details on how agencies will implement these changes are not provided.

Bill History

2026-04-02 S
Received notice of the discharge of all House Conferees (Hse. Com. No. 457).
2026-04-01 H
House Conferee(s) discharged.
2025-12-08 D
Carried over to 2026 Regular Session.
2025-04-21 S
Received notice of appointment of House conferees (Hse. Com. No. 755).
2025-04-17 H
House Conferees Appointed: Lowen, Takenouchi Co-Chairs; Kusch, Perruso, Alcos.
2025-04-11 S
Received notice of disagreement (Hse. Com. No. 704).
2025-04-10 H
House disagrees with Senate amendment (s).
2025-04-08 H
Returned from Senate (Sen. Com. No. 754) in amended form (SD 1).
2025-04-08 S
Report Adopted; Passed Third Reading, as amended (SD 1). Ayes, 23; Aye(s) with reservations: none. Noes, 2 (Senator(s) Awa, DeCorte). Excused, 0 (none). Transmitted to House.
2025-04-04 S
48 Hrs. Notice 04-08-25.
2025-04-04 S
Reported from WAM (Stand. Com. Rep. No. 1805) with recommendation of passage on Third Reading, as amended (SD 1).
2025-04-03 S
The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.
2025-04-01 S
The committee(s) on WAM will hold a public decision making on 04-03-25 10:01AM; Conference Room 211 & Videoconference.
2025-03-21 S
Report adopted; Passed Second Reading and referred to WAM.
2025-03-21 S
Reported from EIG (Stand. Com. Rep. No. 1284) with recommendation of passage on Second Reading and referral to WAM.
2025-03-20 S
The committee(s) on EIG recommend(s) that the measure be PASSED, UNAMENDED. The votes in EIG were as follows: 4 Aye(s): Senator(s) Wakai, Chang, DeCoite, Richards; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella.
2025-03-17 S
The committee(s) on EIG has scheduled a public hearing on 03-20-25 3:00PM; Conference Room 016 & Videoconference.
2025-03-06 S
Referred to EIG, WAM.
2025-03-06 S
Passed First Reading.
2025-03-06 S
Received from House (Hse. Com. No. 352).
2025-03-04 H
Passed Third Reading as amended in HD 2 with none voting aye with reservations; Representative(s) Garcia, Kong voting no (2) and Representative(s) Pierick, Ward excused (2). Transmitted to Senate.
2025-02-28 H
Forty-eight (48) hours notice Tuesday, 03-04-25.
2025-02-28 H
Reported from FIN (Stand. Com. Rep. No. 1016) as amended in HD 2, recommending passage on Third Reading.
2025-02-20 H
The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 14 Ayes: Representative(s) Yamashita, Takenouchi, Grandinetti, Holt, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Reyes Oda; Ayes with reservations: none; Noes: none; and 2 Excused: Representative(s) Alcos, Ward.
2025-02-18 H
Bill scheduled to be heard by FIN on Thursday, 02-20-25 12:00PM in House conference room 308 VIA VIDEOCONFERENCE.
2025-02-11 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; Representative(s) Garcia voting no (1) and Representative(s) Cochran, Ward excused (2).
2025-02-11 H
Reported from EEP (Stand. Com. Rep. No. 352) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
2025-02-06 H
The committee on EEP recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 5 Ayes: Representative(s) Lowen, Perruso, Kahaloa, Kusch, Quinlan; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Ward.
2025-01-29 H
Bill scheduled to be heard by EEP on Thursday, 02-06-25 9:00AM in House conference room 325 VIA VIDEOCONFERENCE.
2025-01-27 H
Referred to EEP, FIN, referral sheet 4
2025-01-23 H
Introduced and Pass First Reading.
2025-01-22 H
Pending introduction.

Official Summary Text

RELATING TO CLEAN ENERGY.
Clean Energy; State and County Agencies; Renewable Energy Projects; Zero-Emission Vehicles; Inflation Reduction Act of 2022
Requires all state and county agencies to utilize applicable federal clean energy tax credits, pursuant to the Inflation Reduction Act of 2022, for the purchase and financing of capital improvement projects that use clean energy technology and zero-emission vehicles. Effective 7/1/2050. (SD1)

Current Bill Text

Read the full stored bill text

HB1295

HOUSE OF REPRESENTATIVES

H.B. NO.

1295

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to clean energy
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

����
SECTION
1.
�
The legislature finds that the
Inflation Reduction Act of 2022 introduced and expanded tax credits for clean
energy technologies to accelerate the transition to a clean energy economy.
�
In addition to providing incentives to spur
private-sector investment, the Inflation Reduction Act includes provisions to
enable tax-exempt and governmental entities to take an active role in building
the clean energy economy.
�
The Inflation
Reduction Act allows for "elective pay", a tax credit monetization
option commonly known as "direct pay", which makes clean energy tax
benefits available to those historically excluded from claiming them, such as
state and local governments, nonprofit organizations, and public utilities.
�
Since these tax-exempt and governmental
entities are not subject to federal income tax, they could not previously claim
the credits, making those benefits available only to private energy developers.

�
The elective pay provisions of the Inflation
Reduction Act levels the playing field for tax-exempt and governmental entities
and offers a tremendous opportunity to expand the reach of clean energy
incentives.

����
Accordingly,
the purpose of this Act is to require all state and county agencies to utilize
applicable federal clean energy tax credits, pursuant to the Inflation
Reduction Act of 2022, for the purchase and financing of renewable energy
projects and zero-emission vehicles.

����
SECTION 2.
�
Beginning July 1, 2025, all state and county
agencies shall utilize applicable federal clean energy tax credits under the
elective pay, also known as direct pay, provisions of the Inflation Reduction
Act of 2022, Pub. L. 117‑169, 136 Stat. 1818, as amended, for
the purchase or financing of each of the following:

����
(1)
�
Capital improvement projects that utilize
clean energy technology, as defined in section 269-121, Hawaii Revised
Statutes; and

����
(2)
�
Zero-emission vehicles, as defined in title 40
Code of Federal Regulations section 88.102-94.

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SECTION 3.
�
This Act does not affect rights and duties
that matured, penalties that were incurred, and proceedings that were begun
before its effective date.

����
SECTION 4.
�
This Act shall take effect on July 1, 2025.

INTRODUCED
BY:

_____________________________

Report Title:

Clean
Energy; State and County Agencies; Renewable Energy Projects; Zero-Emission
Vehicles; Inflation Reduction Act of 2022

Description:

Requires
all state and county agencies to utilize applicable federal clean energy tax
credits, pursuant to the Inflation Reduction Act of 2022, for the purchase and
financing of renewable energy projects and zero-emission vehicles.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.