HB 760 Summary

• Establishes a carbon emissions tax on fossil fuels (petroleum products and natural gas) with rates increasing from 2026 through 2035, then adjusted annually for inflation thereafter.

• Creates a refundable carbon cashback tax credit for qualifying taxpayers, with credit amounts varying by filing status and increasing annually through 2035, then gradually decreasing through 2045.

• Reenacts the agricultural development and food security special fund and establishes a new carbon emissions tax and dividend special fund, with revenue distributions allocated to environmental, energy, and agricultural purposes.

• Increases the environmental response, energy, and food security tax rate on petroleum products from $1.05 to $3.15 per barrel in 2026, and on fossil fuels from $0.19 to $0.49 per million British thermal units in 2026.

• Requires department of taxation reports on carbon cashback program implementation and an office of planning evaluation of the program's effectiveness by 2035.