H.R. 134 Summary

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

• Study must examine business deductions for carbon taxes, unintended consequences of using barrel tax framework for carbon taxation, and effects of carbon tax on fossil fuel use disincentives.

• Study must analyze options to offset regressive nature of carbon tax, including refundable income tax credits for lower-income households and dividend payments to residents over 18 years old.

• Study must determine whether effectiveness of carbon tax would be diminished by refunding revenues to taxpayers through credits or dividend payments.

• Tax Review Commission must submit findings and recommendations to Legislature no later than 40 days before convening of 2021 Regular Session; Commission may contract consultant services for study.