Bill > SB2719

This bill establishes a "carbon cashback" program designed to reduce greenhouse gas emissions by gradually increasing the environmental response, energy, carbon emissions, and food security tax on petroleum products and fossil fuels, with the collected revenue primarily returned to taxpayers through a refundable income tax credit to offset the increased costs. A new special fund, the Carbon Emissions Tax and Dividend Special Fund, will be created to manage administrative expenses related to this program, including administering the tax and the new tax credit, and promoting public awareness of these benefits. The bill outlines a phased increase in the tax rate on barrels of petroleum product and units of fossil fuel, starting in 2027 and continuing through 2036, with subsequent annual increases. For the first year, the tax credit will be a fixed amount per taxpayer and dependent, and for subsequent years, it will be calculated based on a share system tied to the revenue collected from the tax, aiming to provide net financial benefits to most households. The bill also mandates reporting to the Legislature on the program's implementation and financial performance, and appropriates funds for the Department of Taxation to administer the program.

Agriculture and Natural Resources

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=2719&year=2026