HI HB1639

Imposes a state carbon emissions tax of $6.25 per ton of carbon dioxide equivalent emissions on aviation fuel, equivalent to $0.0522 per gallon, with annual increases based on U.S. Energy Information Administration data on carbon dioxide emissions.

Tax applies to aviation fuel sold by distributors to retail dealers or end users, with distributors responsible for paying the tax and filing monthly returns with the Department of Taxation.

All revenue collected from the aviation fuel tax is deposited into the airport revenue fund for use by the Department of Transportation for airport operations, maintenance, improvements, and infrastructure projects.

Establishes a tax credit for lower-income Hawaii residents to mitigate effects of the carbon tax, ranging from $50 to $500 annually depending on gross income and filing status.

Tax takes effect upon approval and is intended to address climate change, support sustainable aviation fuel development in Hawaii, and fund airport infrastructure improvements.