HB 1617 Hawaii House · 2026 Regular Session

RELATING TO TAXATION.

Summary

Reestablishes the Agricultural Development and Food Security Special Fund. Renames the Environmental Response, Energy, and Food Security Tax, also known as the barrel tax, as the Environmental Response, Energy, Carbon Emissions, and Food Security Tax; gradually increases barrel tax rates; and allocates portions of barrel tax revenues to the Agricultural Development and Food Security Special Fund, Carbon Emissions Tax and Dividend Special Fund, Airport Revenue Fund, and Boating Special Fund. Establishes a refundable Carbon Cashback Tax Credit and appropriates funds to the Department of Taxation to administer the tax credit. Establishes the Carbon Emissions Tax and Dividend Special Fund to be used in the administration of the barrel tax and Carbon Cashback Tax Credit and for public awareness of the Carbon Cashback Tax Credit. Requires the Department of Taxation to submit reports to the Legislature. Effective 7/1/3000. (HD1)

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2026

Committee Review

Floor Vote

Governor

Introduced Jan 16, 2026 Last action Feb 18, 2026

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What changed between versions

HB1617 → HB1617_HD1 · 5 edits

MODERATE

This bill revision shifts the policy focus from a carbon tax with cashback refunds to a broader tax restructuring that explicitly reestablishes the agricultural fund and creates a new special fund for carbon tax administration. It clarifies the tax name to include 'carbon emissions' and adjusts the calculation of the cashback credit to use a 'value per share' formula rather than a fixed dollar amount. The effective date is set to July 1, 3000, likely as a placeholder for future legislative action.

Scope change

The bill's scope expanded to include the explicit creation of a 'Carbon Emissions Tax and Dividend Special Fund' and clarified the allocation of barrel tax revenues to multiple specific funds, including the airport and boating funds.

FISCAL

Added a new special fund called the 'Carbon Emissions Tax and Dividend Special Fund' to manage carbon tax revenues and public awareness.

DEFINITION

Renamed the existing 'Environmental Response, Energy, and Food Security Tax' to include 'Carbon Emissions' in the official title.

ELIGIBILITY

Changed the carbon cashback credit calculation from a fixed dollar amount to a variable 'value of one share' based on tax revenue collected.

TIMELINE

Updated the effective date to July 1, 3000, indicating the bill is currently in draft or placeholder status.

REQUIREMENT

Added a requirement for the Department of Taxation to submit reports to the Legislature regarding the program's performance.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 18, 2026

Committee

Reported from EEP/AGR (Stand. Com. Rep. No. 452-26) as amended in HD 1, recommending passage on Second Reading and referral to FIN.

lower

Feb 12, 2026

Lower · Passed

The committee on AGR recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Chun, Kusch, Kahaloa, Lowen, Perruso; Ayes with reservations: Representative(s) Matsumoto; Noes: none; and 1 Excused: Representative(s) Quinlan.

lower

Feb 12, 2026

Lower · Passed

The committee on EEP recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Lowen, Perruso, Chun, Kahaloa, Kusch; Ayes with reservations: Representative(s) Matsumoto; Noes: none; and 1 Excused: Representative(s) Quinlan.

lower

Jan 26, 2026

Committee

Referred to EEP/AGR, FIN, referral sheet 1

lower

Jan 21, 2026

Introduced

Introduced and Pass First Reading.

lower

Jan 16, 2026

Introduced

Prefiled.

lower

12 primary · 7 co-sponsors

Sponsors

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Legislator

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State

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