January 26-28, 2017
The Enterprise Zones (EZ) partnership program is a joint state-county effort intended to stimulate—via tax and other incentives—certain types of business activity, job preservation, and job creation in areas where they are most appropriate or most needed. Up to six zones can be designated per county. (See maps for existing zones.)
If your business (or a branch of your business) is eligible and located in one of the Enterprise Zones (EZ), you can reduce your state taxes and receive other county benefits for up to seven years by satisfying the EZ hiring or, for agricultural related companies, gross receipts requirements.
Businesses which satisfy annual requirements will qualify for the following state tax benefits for up to seven consecutive years:
NOTE: The two non-refundable income tax credits combined may not exceed 100% of income tax due.
State Legislative Changes:
As of July 1, 2008
May increase gross sales by 2% annually rather than the hiring requirements
May use income from value-added products (retail and wholesale) towards certification
In the event of a natural disaster, agricultural producers and processors will receive EZ benefits
Leased employees or joint employment contract
Employees may be counted as full time employees
As of July 1, 2009
Extended the EZ tax credits and exemptions, for businesses engaged in the manufacturing of tangible personal property or in the producing or processing of agricultural products, for an additional three years.
Allow the receipts, sales, and employees of a business’s establishments in all enterprise zones located within the same county to count towards qualification requirements.
Each county will offer eligible businesses additional benefits that may include one or more of the following:
CITY AND COUNTY OF HONOLULU (THE ISLAND OF OAHU):
HAWAII COUNTY (THE “BIG” ISLAND):
KAUAI COUNTY (THE ISLANDS OF KAUAI AND NIIHAU):
MAUI COUNTY (THE ISLANDS OF LANAI, MAUI AND MOLOKAI):
To enroll in the Enterprise Zones partnership, at least half of a firm’s annual gross income in an EZ must be from one or more of the following activities:
Other businesses are not eligible, including retailers and some professional services. Contractors (firms which build, maintain, or repair real estate, such as custodial, construction, painting, electrical, and plumbing firms) also are ineligible to enroll in the EZ program.
Each county may select up to six zones for approval by the Governor. Zones exist for 20 years each. Zones may also be expanded to include adjacent eligible areas during the zone’s 20-year existence. 22 zones currently exist statewide. All or part of the following areas have been designated on the dates indicated:
Maui County (Molokai/Lanai)
Go to Electronic EZ Program Forms. Note: if you do not already have an eHawaii account, you will be prompted to set one up in order to file EZ forms electronically. Also, for current EZ Program companies, after you establish your eHawaii account, please notify us if you haven’t already so we may link your email with your company EZ record (this is done automatically only for new applicants). For current EZ Program companies we must manually link your email with your company account. We will then send you a confirmation that you may now use the system to file your reports. We have attached a short notification form here (link to pdf attached) for your reference if you would like to complete and return to us.
If you have any questions, the State Enterprise Zones Partnership coordinator can be reached at: (Oahu) 587-2772.
For more information on the County benefits listed above, contact your county coordinator: Honolulu County– (808) 768-5859; Hawaii County–(808) 961-8496; Kauai County– (808) 241-4949; Maui, Molokai, & Lanai County– (808) 270-7710.
Hawaii Revised Statutes
Hawaii Administrative Rules