Bill > SB125

This bill modernizes Hawaii's State Enterprise Zone Program by expanding the definition of "eligible business activity" to include new types of businesses and extending tax benefits. Specifically, the bill adds retail sales of locally manufactured tangible personal property, processing of value-added agricultural products, professional healthcare services, advanced manufacturing, and cybersecurity technology development to the list of qualifying activities. The legislation extends tax credit and general excise tax exemption periods from 7 to 9 years for most businesses, and from 10 to 12 years for manufacturing and agricultural businesses. The bill aims to support local businesses by updating program rules that were established before modern business models emerged, particularly allowing manufacturers to sell directly to consumers without losing enterprise zone benefits. The changes will help stimulate business growth, preserve and create jobs, and provide tax relief for businesses operating in designated enterprise zones. The new provisions will apply to businesses designated as qualified after July 1, 2025, with tax credit extensions taking effect for taxable years beginning after December 31, 2025, and general excise tax exemption changes starting January 1, 2027.

Agriculture and Natural Resources, Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=125&year=2026