Bill > HB760

This bill establishes a comprehensive carbon emissions tax and dividend program in Hawaii designed to reduce greenhouse gas emissions while providing financial relief to residents. The legislation creates a new environmental response, energy, carbon emissions, and food security tax on petroleum products and fossil fuels, with tax rates that gradually increase from 2026 to 2036. Simultaneously, the bill introduces a refundable carbon cashback tax credit that will provide financial compensation to taxpayers to mitigate the potential economic impact of the new tax. The tax credits vary based on filing status and number of dependents, with amounts increasing from 2026 to 2035 and then stabilizing. The bill also reenacts the agricultural development and food security special fund and establishes a carbon emissions tax and dividend special fund to manage the revenues and administrative costs. The legislation requires the Department of Taxation to submit annual reports about the program's implementation and impact, and mandates an evaluation of the carbon cashback program by 2035. The goal is to reduce Hawaii's greenhouse gas emissions while providing a progressive financial mechanism that minimizes economic burden on residents, particularly lower-income households.

Agriculture and Natural Resources, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=760&year=2026