HI HCR155

Requests the Tax Review Commission to conduct a study on tax ramifications of enacting climate change mitigation and adaptation legislation in Hawaii.

Study must examine provisions allowing business entities to deduct carbon tax payments as business expenses under existing state law.

Study must analyze unintended consequences of using the barrel tax framework to impose a carbon tax while maintaining current revenue allocations to special funds.

Study must evaluate effects and feasibility of offset mechanisms for carbon tax regressivity, including refundable income tax credits and resident dividend payments.

Tax Review Commission must submit findings, recommendations, and any proposed legislation to the Legislature no later than 40 days before the 2021 Regular Session convenes.