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HomeMy WebLinkAboutCOM 0471.002 2014-2016William P. Kenoi Mayor SUBMITTED BY: JANE HORIKE DEPARTMENT OF RESEARCH P % GREDC RES. 283-15 COMM. 471 R. Kawehi Inaba Director Donn S. Mende Deputy Director County of Hawaii, DEPARTMENT OF RESEARCH AND DEVELOPMENT 25 Aupuni Street, Room_ 1301 • Hilo, Hawaii 96720-4252 -; (808) 961-8366 • Fax(808)935-1205 1 E-mail: chresdev@hawaiicounty.gov 0 - About Enterprise Zones *�o The Enterprise Zone program is a state -county partnership that has been growing job opportunities on Hawaii Island for over 20 years by incentivizing business investment in areas with low income or high unemployment. Nearly 300 Hawaii Island businesses have participated in the Enterprise Zone program since 1994. In 2013, Enterprise Zone participating companies on Hawaii Island accounted for over $116 million in revenue and over 600 jobs. The Enterprise Zone is an area within which businesses engaged in eligible activities can receive state and county tax incentives, provided they meet job growth goals (or revenue goals for agriculture businesses). Businesses in an Enterprise Zone can participate in the program for seven years (ten for agriculture or manufacturing businesses). Participating businesses are eligible for 100% exemption from state wholesale general excise tax (.5%), 20-80% non-refundable credit on state income tax, and a non-refundable state tax credit for the cost of unemployment insurance premiums. Businesses are also eligible for a three-year exemption from any increase in county property taxes resulting from new construction. Enterprise Zone eligible activities include farming, ranching, agricultural processing, and certain +� .-`�*� 3 kinds of high tech businesses. c o P 0 The Enterprise Zone designation does not supersede any county zoning, state land use designation, building regulations, or any other regulations applicable to business operations. a We propose expanding the Enterprise Zones on Hawaii Island so that more of our local t' entrepreneurs can participate and realize the benefits of the program. With a minimum size of one full-time worker, even small family-owned businesses — family farms, for example — can participate. Expanding Enterprise Zones will allow more businesses to create more jobs in the areas that need it most to support our working families. Revised March 18, 2015