Establishes a comprehensive carbon emissions tax and dividend program in Hawaii designed to reduce greenhouse gas emissions while providing financial relief to taxpayers.

Establishes a comprehensive carbon emissions tax and dividend program in Hawaii designed to reduce greenhouse gas emissions while providing financial relief to taxpayers. Incrementally increases the environmental response, energy, and food security tax on petroleum products and fossil fuels from 2026 to 2036, with the tax rate rising each year to discourage fossil fuel consumption. To mitigate the potential economic impact on residents, the bill creates a carbon cashback tax credit system that will provide annual refundable tax credits to individual taxpayers and dependents, with the credit amounts increasing from 2026 to 2035 and then gradually decreasing. Reenacts the agricultural development and food security special fund, which was previously repealed during the COVID-19 pandemic, and establishes two new special funds: the carbon emissions tax and dividend special fund and the agricultural development and food security special fund. Tax revenues will be distributed across various state funds, including environmental response, energy security, and agricultural development funds. Requires the Department of Taxation and the Office of Planning and Sustainable Development to submit regular reports to the legislature evaluating the program's implementation and effectiveness, with the goal of reducing Hawaii's greenhouse gas emissions in line with the state's zero emissions clean economy target.

Pending Committee action. Same as SB 685.

01/23/2025 Introduced. Passed first reading.
01/27/2025 Referred to House Committees on Energy and Environmental Protection, Agriculture, Economic Development and and Technology, and Finance.