RELATING TO TAXATION.
Summary
Reenacts the agricultural development and food security special fund. Establishes and appropriates moneys into the carbon emissions tax and dividend special fund. Establishes a refundable tax credit to mitigate the effect of a carbon emissions tax on taxpayers. Amends the environmental response, energy, and food security tax by taxing fossil fuels based on their emissions. Requires reports to the Legislature. Effective 7/1/3000. (HD1)
Bill status
in committee
1 of 4 stages cleared
Introduction
Jan 2025
Committee Review
Floor Vote
Governor
Introduced Jan 17, 2025
Last action Feb 6, 2025
Maddy AI version diff · 1 comparison
What changed between versions
HB760
→
HB760_HD1
·
6 edits
MODERATE
This bill amends Hawaii's environmental tax system to create a carbon emissions tax on fossil fuels while simultaneously providing a refundable tax credit (carbon cashback) to offset costs for lower-income residents. It also reinstates a special fund for agricultural development that was previously repealed. The changes establish a progressive tax structure with specific rates for petroleum and natural gas, distribute tax revenues to various state funds, and require annual reporting on the program's effectiveness.
Scope change
The bill expands the existing environmental tax to explicitly tax fossil fuels based on their carbon emissions rather than just as a general environmental fee, and adds a new refundable tax credit program to return revenue to taxpayers.
FISCAL
Establishes a new 'carbon emissions tax and dividend special fund' to collect and distribute tax revenues.
Reinstates the agricultural development and food security special fund that was repealed in 2021.
ELIGIBILITY
Creates a refundable carbon cashback tax credit for qualifying taxpayers earning up to 80% of the area median income.
REQUIREMENT
Requires the Department of Taxation to submit annual reports on carbon cashback program revenues and distributions.
TIMELINE
Sets specific effective dates for tax rate increases starting in 2026, with the carbon cashback program beginning for taxable years after December 31, 2024.
DEFINITION
Defines 'qualifying taxpayer' as persons subject to state income tax who are not claimed as dependents by another taxpayer.
Floor votes
How they voted
No floor votes recorded yet.
Full legislative history
Actions timeline
Total actions
10
Key actions
2
Committee
4
Feb 6, 2025
Committee
Reported from EEP/AGR (Stand. Com. Rep. No. 231) as amended in HD 1, recommending passage on Second Reading and referral to ECD.
lower
Jan 30, 2025
Lower · Passed
The committee on AGR recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 5 Ayes: Representative(s) Kahaloa, Kusch, Lowen, Perruso, Quinlan; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Ward.
lower
Jan 30, 2025
Lower · Passed
The committee on EEP recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 5 Ayes: Representative(s) Lowen, Perruso, Kahaloa, Kusch, Quinlan; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Ward.
lower
Jan 21, 2025
Committee
Referred to EEP/AGR, ECD, FIN, referral sheet 2
lower
Jan 21, 2025
Introduced
Introduced and Pass First Reading.
lower
Jan 17, 2025
Introduced
Pending introduction.
lower
8 primary · 0 co-sponsors
Sponsors
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