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COM 0682.001 2006-2008
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COM 0682.001 2006-2008
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Last modified
5/14/2008 1:23:34 AM
Creation date
5/8/2008 6:39:08 PM
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Communications
Communications - Type
COM
Communications - Council Term
2006-2008
Communication
0682
Point
001
Author
Jane Testa, Research and Development Jane Horike, Economic Development Specialist
Communications - Referred To
PC
Comments
Presented: PC - 10/16/07
Document Relationships
AGE PC 10/16/2007 2006-2008
(Related)
Path:
\Council Records\Agendas\2006-2008\Plannning Committee (PC)
COM 0682.000 2006-2008
(Related)
Path:
\Council Records\Communications\2006-2008
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The specific requirements that must be satisfied as described: ~ - <br /> "Existing"businesses: Businesses already in an EZ must increase their average annual <br /> number of full-time employees by at least 10% in the first year. The average annual number of <br /> full-time employees must also increase by at least 10% annually in years 2 to 7. <br /> "New" businesses: Businesses that start up in or move to an EZ must increase their average <br /> annual number offull-time employees by at least 10% in the first year. The average annual <br /> number offull-time employees in the years 2 to 7 can fluctuate, but cannot be less than the <br /> average number of employees required in the first year. (Note: New businesses will be <br /> considered `nevJ' throughout their 7-years of eligibility.) <br /> INCENTIVES <br /> State: <br /> Businesses, which satisfy all requirements, will qualify for the following state tax benefits for up <br /> to 7 consecutive years: <br /> D 100°!° exemption from the General Excise Tax (GET) and Use Tax every year. <br /> (The GET exemption applies only to gross revenues from EZ-eligible business <br /> categories within an EZ.) <br /> ? Licensed contractors are also exempt from GET on construction done within an <br /> EZ for an EZ-qualified business. <br /> ? An 80% reduction of state income tax the first year. (This reduction goes down <br /> 10% each year for 6 more years.) <br /> ? An additional income tax reduction equal to 80% of annual Unemployment <br /> Insurance premiums the first year. (This reduction goes down 10% each year <br /> for 6 more years.) <br /> NOTE: The two income tax reductions combined cannot exceed 100% of income fax due. <br /> <br /> County: <br /> Each county will offer eligible businesses additional benefits that may inGude one or more of the <br /> <br /> following: <br /> ? Priority permit processing; . <br /> ? Zoning or building permit waivers or variances; <br /> ? Property tax adjustments; <br /> ? Priority consideration for federal job training or community development funds. <br /> HOW TO PARTICIPATE <br /> Business participation will begin once each County selects areas for zone designation. Once <br /> zone designations have been made, further inquiries can be addressed by calling the Mayor's <br /> office of the county in which your business is or vrill be located, or the State of Hawaii <br /> Department of business, Economic Development, and Tourism (DBEDT). <br /> The DBEDT Enterprise Zones program coordinator can be reached at the following numbers: _ <br /> ({f calling from the Neighbor Islands, dial extension 6-2593 after you have reached the number <br /> you dialed or ask for the Enterprise Zone Program.) <br /> Hawaii: 974-4000, Kauai: 274-3141, Maui: 984-2400, <br /> Molokai/Lanai: 1-800-468-4644, Oahu: 586-2593 <br /> <br />
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