summary
Introduced
01/21/2026
01/21/2026
In Committee
05/01/2026
05/01/2026
Crossed Over
03/06/2026
03/06/2026
Passed
07/07/2026
07/07/2026
Dead
Signed/Enacted/Adopted
07/07/2026
07/07/2026
Introduced Session
2026 Regular Session
Bill Summary
Amends the definition of "eligible business activity" for the purposes of the Enterprise Zone Program to include certain retail sales of tangible personal property; processing of certain value-added agricultural products; research development, sale, or production of all types of medical products and medical and health care services; activities of the Hawaii Food and Product Innovation Network; the provision of certain professional services by health care professionals; aerospace research and development activities; and information technology design and production services. Authorizes the Department of Business, Economic Development, and Tourism to declare up to two census tracts on state land that contain an innovation enterprise to be designated as an enterprise zone, subject to the Governor's approval and notwithstanding certain conditions. Requires DBEDT to conduct a comprehensive review, in consultation with the Department of Taxation, of the State Enterprise Zones Program and to submit a report to the Legislature. For taxable years beginning after 12/31/2026, extends the eligibility period of the state business tax credit for qualified businesses within state enterprise zones. Beginning 1/1/2028, extends the eligibility period of the general excise tax exemption for qualified businesses within state enterprise zones. Applies to qualified businesses who join the Enterprise Zone Program on or after 7/1/2026. (CD1)
AI Summary
This bill updates Hawaii's State Enterprise Zone Program to modernize its offerings and encourage business growth by expanding the definition of "eligible business activity" to include a wider range of industries such as retail sales of tangible personal property (items that can be touched or felt), processing of value-added agricultural products (agricultural products enhanced beyond their raw state), medical product development and healthcare services, activities of the Hawaii Food and Product Innovation Network, aerospace research and development, and information technology design and production. It also allows the Department of Business, Economic Development, and Tourism (DBEDT) to designate up to two census tracts on state land containing an "innovation enterprise" (areas supporting businesses in fields like IT, aerospace, and medical technology) as enterprise zones, even if they don't meet all standard criteria, with the Governor's approval. Furthermore, DBEDT is required to conduct a comprehensive review of the program and report its findings to the Legislature, and the eligibility periods for state business tax credits and general excise tax exemptions for qualified businesses within enterprise zones are extended for taxable years beginning after December 31, 2026, and January 1, 2028, respectively, for businesses joining the program on or after July 1, 2026.
Committee Categories
Agriculture and Natural Resources, Budget and Finance, Business and Industry
Sponsors (11)
Stanley Chang (D)*,
Lynn DeCoite (D)*,
Rachele Fernandez Lamosao (D)*,
Carol Fukunaga (D)*,
Mike Gabbard (D)*,
Troy Hashimoto (D)*,
Michelle Kidani (D)*,
Angus McKelvey (D)*,
Tim Richards (D)*,
Brandon Elefante (D),
Glenn Wakai (D),
Last Action
Act 182, on 07/06/2026 (Gov. Msg. No. 1284). (on 07/07/2026)
Bill Topics
Community Development and Housing Issues
- ‐ Community and Regional Development
Macroeconomics
- ‐ Industrial Policy
- ‐ Taxation, Tax Policy, and Tax Reform
Official Document
bill text
bill summary
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bill summary
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bill summary
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