SB810 would create a new state carbon emissions tax on aviation fuel sold in Hawaiʻi, set initially at $6.25 per ton of carbon dioxide equivalent emissions, which the bill translates to $0.0522 per gallon and allows to increase annually based on federal emissions calculations. The tax would be paid by fuel distributors and administered through chapter 243, Hawaiʻi Revised Statutes. Revenue from the tax would be deposited into the airport revenue fund and used for airport-related purposes, including operations, maintenance, repairs, improvements, and other statewide airport system needs.
The bill also creates a refundable income tax credit intended to offset the effect of the aviation fuel carbon tax on lower-income resident taxpayers. The credit is tiered by filing status and income, ranging from $50 to $250 for single filers and from $100 to $500 for joint, head of household, or married filing separately filers. Claims would be filed through the Department of Taxation, and the credit would apply to taxable years beginning after December 31, 2024.
Impact
SB810 would amend chapter 235 to add a new refundable income tax credit for qualifying resident taxpayers and chapter 243 to impose a new aviation-fuel-specific carbon emissions tax. It would also amend chapter 261 to direct aviation fuel tax proceeds into the airport revenue fund, tying the new tax revenue to airport system funding rather than the general fund. The bill would affect aviation fuel distributors, airlines and other end users through fuel pricing, and lower- to moderate-income resident taxpayers through the offsetting credit.
Sentiment
The bill text reflects strong support for climate policy, emissions reduction, and airport infrastructure investment, framing the measure as part of Hawaiʻi’s leadership on greenhouse gas mitigation. No committee transcripts or recorded votes were provided, so there is no direct evidence of legislative debate, amendments, or formal support/opposition in the available context. Based on the bill’s structure, it appears designed to balance environmental goals with consumer relief and airport funding.
Contention
The main likely point of contention is the imposition of a new tax on aviation fuel, which could raise fuel costs and potentially affect air travel prices, airlines, and the broader tourism-dependent economy. Supporters would likely emphasize climate mitigation, sustainable aviation fuel development, and dedicated airport funding, while critics may question the economic burden, the pass-through effect on consumers, and whether a state-level aviation fuel tax is the best mechanism for emissions reduction. The refundable tax credit appears intended to address regressivity, but its adequacy and eligibility limits could also be debated.