HB1265

Hawaii HB1265 establishes a tax credit for businesses using recycled or waste inputs in their operations.

Hawaii HB1265 introduces a tax credit for businesses that incorporate recycled or waste materials into their products or services. The credit is ten percent of the cost of recycled or waste inputs, up to $500,000 per year, or fifteen percent, up to $750,000 per year, if the business is in a rural area. To qualify, businesses must use materials diverted from the waste stream, such as post-consumer or post-industrial materials, sourced from certified facilities. The credit applies to taxable years beginning after December 31, 2025.