Bill > SB633

This bill introduces a comprehensive carbon emissions reduction strategy for Hawaii by establishing a carbon tax and dividend program. The bill incrementally increases the environmental response, energy, and food security tax on petroleum products and fossil fuels from 2026 to 2036, with rates rising each year to discourage fossil fuel consumption and reduce greenhouse gas emissions. To mitigate the potential economic impact on lower-income residents, the bill creates a refundable carbon cashback tax credit for taxpayers earning up to approximately 80% of the area median income, with credit amounts varying based on household income and filing status. The bill also establishes two new special funds: the carbon emissions tax and dividend special fund to administer the program and support public awareness, and the agricultural development and food security special fund to support local agriculture. The tax revenues will be distributed across various state funds, including environmental response, energy security, and agricultural development funds. The bill requires annual reporting to the legislature on the program's implementation and effectiveness, with a comprehensive evaluation planned for 2035. The tax increases and tax credit program will begin in 2026, with the first tax credits available for the 2025 tax year, aiming to reduce Hawaii's greenhouse gas emissions while providing financial relief to residents.

Agriculture and Natural Resources

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=633&year=2026