This bill modernizes Hawaii's enterprise zone program to better support local businesses by expanding the range of eligible activities and updating qualification rules. It allows local manufacturers that sell directly to retailers to qualify for benefits, adds new eligible sectors such as aerospace technology and specific medical services, and permits the state to designate up to two census tracts on state land as enterprise zones if they contain innovation enterprises. Additionally, the bill requires the Department of Business, Economic Development, and Tourism to conduct a comprehensive review of the program in consultation with the Department of Taxation and report its findings to the legislature. These changes aim to revitalize neighborhoods and promote job creation and preservation for local companies in designated areas.
This bill directs the state to annually evaluate tax expenditures, such as income tax credits and tax exemptions, to ensure they remain effective and aligned with current public priorities. The key provision requires the government to collect and analyze data on these financial incentives to measure their actual outcomes, like job creation or economic growth, against their costs. By reviewing this information regularly, the legislature can decide whether to continue, modify, or eliminate specific tax breaks that may no longer serve their intended purpose or create unfair market advantages. Ultimately, the law aims to improve fiscal accountability and ensure that tax policies deliver clear value to taxpayers rather than relying on outdated assumptions.
This bill creates a general excise tax exemption for the sale of aircraft parts and tools to airlines in Hawaii. It directly affects aviation companies that purchase materials for servicing planes or building maintenance facilities. The law corrects a previous legal ruling that had excluded these parts from the tax exemption, aligning the rules with those used for importing such items. By removing the tax on these specific purchases, the state aims to support the airline industry and remain competitive with other states. The changes will officially take effect on January 1, 2027.
Expands the definition of "eligible business activity" for the purposes of the Enterprise Zone Program to include certain 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 in the State that contain an innovation enterprise to be designated as an enterprise zone, subject to the Governor's approval. Requires DBEDT to conduct an in-house comprehensive review, in consultation with the Department of Taxation, of the State Enterprise Zones Program and requires a report to the Legislature. Effective 7/1/3000. (HD1)
Amends the definition of "eligible business activity" for enterprise zone program purposes to include retail sales of tangible personal property manufactured and sold in the enterprise zone that is to be used or consumed by the purchaser and not for resale, the processing of value-added agricultural products grown within an enterprise zone, and the provision of professional services by health care professionals in health care related sectors.
Establishes the Trade-Oriented Production Capacity Grant Program within the Department of Business, Economic Development, and Tourism to support one-time capital investments that expand the State's manufacturing and production capacity for trade. Provides grants for equipment, automation, and facility improvements that directly increase output, efficiency, and competitiveness for eligible businesses, with required private-sector matching funds. Prioritizes traded-sector businesses with interstate or international market potential to help generate measurable near-term trade and economic returns. Appropriates funds.
Requires the Department of Business, Economic Development, and Tourism, in collaboration with the Department of Taxation, to study the effectiveness of tax expenditures, prepare summary descriptive statistics, submit annual reports to the Legislature, and develop appropriate schedules and tax return forms to collect adequate information for evaluation of tax expenditures. Authorizes Department of Business, Economic Development, and Tourism staff to access certain information on tax returns to conduct evaluations of tax expenditures. Applies to taxable years beginning after 12/31/2026. (CD1)
Amends the definition of "eligible business activity" for State Enterprise Zone Program purposes to include retail sales of tangible personal property manufactured and sold in the enterprise zone to the final consumer, the processing of value-added agricultural products grown within an enterprise zone, the provision of professional services by health care professionals in health-care-related sectors, the use of advanced manufacturing to produce products, or the development of cybersecurity technology. Extends the eligibility period of the state business tax credit and general excise tax exemption for qualified businesses within state enterprise zones from 7 years to 9 years. Extends the eligibility period of the general excise tax exemption for qualified businesses within state enterprise zones engaged in the manufacturing of tangible personal property or the producing or processing of agricultural products from 10 years to 12 years. Makes the extension of the state business tax credit eligibility period applicable to taxable years beginning after 12/31/2025. Makes the extension of the general excise tax exemption eligibility period take effect on 1/1/2027. Effective 7/1/3000. (HD1)
SB 2935 exempts sales of feminine hygiene products from the general excise tax, meaning manufacturers and retailers selling these items will not pay this tax on the income from those sales. The exemption directly affects businesses that sell products like tampons, pads, and menstrual cups. The bill takes effect on January 30, 2050, and would remove a tax burden currently applied to these essential health products. This change is a specific policy adjustment to the tax code, not a broader health or funding measure.
SB 2891 exempts grocery purchases made by individuals aged 65 and older from Hawaii's general excise tax. This policy change directly affects seniors who buy groceries, removing a sales tax on these items. The key provision is a targeted tax exemption for grocery sales specifically to this age group. The bill is currently under review by the House Health and Human Services Committee after passing its first reading.
