Tax Incentives and Credits
- No personal property tax. One of the few states no longer using this tax on inventories, furniture, equipment, machinery, etc.
- A credit against taxed paid on purchase of capital goods, such as machinery, other equipment.
- No State tax on goods manufactured for sale out of state.
- No stock transfer tax.
- No unincorporated business tax.
- Research and development state tax credit for qualified research.
Enterprise Zone Program – The Enterprise Zones (EZ) partnership is a joint state-county business effort 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. The program includes: a seven year exemption from general excise taxes on gross proceeds; an 80% first year income tax abatement (decreasing 10% each year) and an income tax credit equal to 80% of unemployment taxes paid the first year (decreasing 10% per year).
Opportunity Zone Program – The recently passed Federal Tax Cuts and Jobs Act of 2017 authorized a community economic development program called the Opportunity Zones Program. This initiative provides incentives for investors to re-invest unrealized capital gains into Opportunity Funds in exchange for temporary tax deferral and other benefits. The Opportunity Funds will then be used to provide investment capital in certain low-income communities. To learn more about Hawaii’s Opportunity Zones go to our Opportunity Zone webpage.
Foreign Trade Zone #9 – Foreign Trade Zones provide duty-free treatment for items that are processed in FTZ and then re-exported. Duty payment is also deferred on items until they are brought out of the FTZ for sale in the U.S. market. It helps to offset customs advantages available to overseas producers who compete with domestic industry.
Workforce Training Funds – Hawaii offers excellent employee training funds for improving its productive workforce. The Hawaii Department of Labor and Industrial Relations through its Workforce Development Division provides funding for businesses employment and training opportunities.
CONTACT – for details on investing or establishing your business in Hawaii, please contact:
Department of Business, Economic Development & Tourism