Bill > HB1375

This bill establishes a comprehensive carbon emissions reduction and tax credit program in Hawaii designed to combat climate change while providing financial relief to taxpayers. The bill introduces a gradually increasing environmental response, energy, carbon emissions, and food security tax on petroleum products and fossil fuels, starting in 2026 at low rates and incrementally rising over a decade to more substantial levels. Simultaneously, the bill creates a carbon cashback tax credit system where taxpayers will receive annual refundable tax credits that correspond to the collected emissions tax, with different credit amounts for individual taxpayers and dependents based on filing status. The tax credits are structured to peak in 2035 and then slightly decline, ensuring that most Hawaii residents receive more money back than they pay in increased fuel costs. Additionally, the bill reenacts the agricultural development and food security special fund and requires regular reporting to the legislature about the program's implementation and effectiveness. The goal is to reduce greenhouse gas emissions, provide economic protection for residents, and support Hawaii's transition to a zero-emissions clean economy, with the policy design based on recommendations from economic research including a University of Hawaii study that suggested most households would benefit financially from such an approach.

Agriculture and Natural Resources

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1375&year=2026