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Home My WebLink AboutCOM 0600.001 2018-2020 ®F h4j!+ County of Hawai`i c}?�`�;,�„ ' ,,Va1ti; Phone: (808)961-8564 Council District 9- (808)887-2069 North and South Kohala Email: tim.richards,Li}hai,i'aiicout �.-rev Chair: Committee on Agriculture, Nice Chair: Committee on Finance Water, Energy, &Environmental °; N> Management I HERBERT M. "TIM" RICH S, III E HAWAII COUNTY COUNCIL District 9 25 Aupuni Street, Ste, 1402, Hilo, Hawai`i 96720 DATE: November 12, 2019 ry TO: Aaron Chung, Council Chair and Members of the Ilawai`i County Council FROM: Tim Richards, Council Member Council District 9 -North and South Kohala SUBJECT: Presentation on the Hawaii Enterprise Zone The Department of Research and Development has submitted their PowerPoint presentation for the scheduled Governmental Relations and Economic Development committee meeting on November 19, 2019. Attached please find a hard copy of the PowerPoint presentation file entitled Hawai`i Enterprise Zones Program. An electronic copy will be sent as well. I appreciate your assistance in getting this content prepared. Any questions or concerns,please do not hesitate to contact my offices directly. Mahalo! Wo .1 Comm. Ref.To Hawaii County is an Equal Opportunity Provider and Employer Ref. pate NOV 2 0 2019 ENTERPRISE � He communities by helping businesses HAWAII ENTERPRISE ZONES ( EZ) PROGRAM Helping communities by helping businesses It khL 91 ENTERPRISES PROGRAM PURPOSE Helping communities by helping businesses Reduce poverty and foster economic development by providing incentives for investment, job creation and retention . Promotes local ownership and control (community-based economic development) by providing incentives for certain kinds of businesses already accepted in the community. 4, proligi ENTERPRISE IMIRIM Heaping communities by he[ping businesses PROCESS AND INCENTIVES State Provide excise and income tax incentives Counties Designate areas based on low income or high unemployment census tracts. Nominate zones for Governor's approval. Provide incentives Assist DBEDT with marketing and promotion Eligible businesses Enroll and qualify annually by meeting EZ program goals. OP! oil ENTERPRISE 11MIMIM! RTA, 1 +;; Jq Heaping communities by helping businesses 100% General Excise Tax exemption for 7 years. Non-refundable State income tax credit against tax liability - 80% declining to 20% over 7 years. Another non-refundable State income tax credit of UI premium - 80% declining to 20% over 7 years. Licensed contractor do not have to pay GET on income from construction or major renovation paid by EZ firm A b6 � ERTTISE He[ping communities by he[ping businesses HAWAVI COUNTY BENEFIT HAWAII COUNTY (THP " BIG" ISL AM .� Three-year exemption from any increase in property taxes resulting from new construction by EZ firms at their EZ sites ENTERPRISE V1403,61 1*1 Helping communities by helping businesses DETERMINING ZONE Eligibility Criteria For ZONE NOMINATION At least twenty-five per cent of the population of each census tract shall have a median family income below eighty per cent of the median family income of the county in which the census tract is located . The unemployment rate in each census tract shall be at least 1 . 5 times the state average unemployment rate. 111r'd,61 ENTERPRISE M91M Hetping communities by he[ping businesses ELIGIBLE BUSINESS ACTIVITIES or Agricultural production or ./ Information technology design and processing (wholesale, value- production added retail products) Medical research, clinical trials, Manufacturing (wholesaling) and telemedicine Wholesaling/Distribution For-profit training programs in Biotechnology research, international business development, production, or sales management or environmental remediation Aviation or maritime repair or maintenance •�` Repair or maintenance of assistive technology equipment Telecommunications switching and delivery systems Certain types of call centers Wind energy producers OP! hill ENTERPRISE - -NEGM ELIGIBLE BUSINESSES ENROLL & QUALIFY ,tag communities by helping businesses Submit online application if: Located in a designated EZ .� More than 50% of revenue from eligible business activity must be earned in the EZ. .� Employ at least one full-time worker (Full-Time = 20 or more hours per week) Submit online End-Of-Year form to DBEDT to qualify for benefits. Maintain hiring goals: "New" - Grow 10% first year, hold level for 6 years "Existing" - Grow 10% or 1 person in Year 1 and maintain employees in year 2-3; 15% each year from Years 4-7 LINDA LINGLE DEPARTMENT OF BUSINESS, TXEODOREE IIIK'aLIN '��3.' ECONOMIC DEVELOPMENT&TOURISM T� TT' 4r� � —li.glA D.M1aw0 R..l2359 H-1.Hotel Street..3M1 Flo r Honolulu Heu 196813 TelePM1one' i696158fi 2355 6 M gAdd PO 8 2359 Honolulu Hawa 9890) a Fex_ 909)598231' Hetping communities by het int businesses Octobef 5.2110 Mr.Ioe Hva�eii President Aloha Company 1-,85 Milo Street Hila,HI 96/2D Dear Mr_Hvwnii_ Covgratvlatiovel Your firm,eppliyad,n[o rnroll iv lIawaife Ente'priscZ,nc,Parmaship Program has b,cn approved.Thi...m,yo..fl— h—an e,L blis—at 16-585 Milo Street,Hilo,Hawaii 96720,m the Hilo-Puna Enterprise Zove and according m yom applitatiom itis engaged iu ono or uwre EZ-eligibly business activities. Y'l 11 FZ.eV alil-:t li.s nnw el-gil la fir.Irdil'y I'n-P.Z benefitsl I l...yen cn' five ye�us(84 -�e monll:)_4 nr seveai rs of dWbfil begins on November 1,2010,wlih lwenly-one(21)NRalme,.ploy,,,and wIN end oN Odobrr 31,2017. E your PZ etablkh—t dory not meet rhe LZ hvmg end other requvcmrno in any given year,Yoor Srtn will Kill be cligiblc[o qualify for GZ hiring rncrn[ivcs iv subecquwt years as long as your Srm hey not cxhautcd its 84 month,of eligibility. Y"""ll needl"'0-1a!hnd"h 1 rule-veer'rf .Finn We'll Infeach hill I.ti�J lin ye:rl Vnblislnnerll IIrxlesin IIIc FZ laag.tmbterepnrlbnr yrrwll'eed lolr.-1 I.'udirnll I NI,I.ynlrr l-- ;k7.eViJiliai II;riYi.lied tel-rrg.nlrlgnrs; ceipL regoiremevts for each me year.Thisformshonldb—bmittedfbrapprovel before clauning the EZ 3ta[e ivcometax aediL and the Genernl Ezdse Tex exemptions an[axes doe from EZ-eligible activities a[your EZ etablishmenL No[r The State Department of Taxation allow,EZ rnrolled firms[o choose to top paying state excise end income taxes dining their seven years(61 c,nsecufive months)of EZ enrollment with the understanding that. • Evro11cdfinvswbich6,osc m top paying tate,xciec and/or ctimazcd inc,mc las cs must continue to submit th cir periodic cx,m end income tax payment forms m rhe Hawaii State Department of T—iom Enr,ll,d fhm,wbich choose m Sop paying tate excise &,,i--t,,,,may b,wbjed to p,ym,m of unpaid,r,te income and/or WELCOME LETTER d„tar„(pins nt,r,tandpn„iblyp attic,)fth, EZhinug andlor gms revenue regwremenG are not met during each tax year d—.g which an BZ enrolled fine does vol make slate mrome andlor excise[ax payvtenG. Emailed fhm,that l.i.,,,intend to d—,the EZ exemption fi,m exci,etex an EZ-eligiblehould n,longer showm ita—d cost labeled as"grncral excise tax”on the receipt or invoice issued[,cusmmcrs who pay Par CZ-cligiblc products and/or Ifyomfimrs kfie,rhe EZgrow..venues end hiving..quircmenrs each tax year of emollmem,the Slate Department of Busmees Economic De,,I pmmL and Tourism(DBEDT)will ism,a certificate m yon indicating,hat yon.EZ eetabli.,h=,t has satisfied the EZ gross.......end hiring requirements for each tax year during}'our seven e,nsecufiea years(bl montlts)of enrolhnenG'lbese ce.tifica[es dtould be copied.and the copies Should be alladtad to your slate inrome andl,r excise[ax..hmts. Notes Thi..does not rgpldv ro the mnnmcror's exemprlmrfirom ganani excirz rm li-ami be claimed fry n iieerv..rontmetor mr rer.en.—from vorkd..m the EZ EZ--lid b—,—) Pl else 1,eq'If-tells vv life.,f ern have"—,n e.4lirnix abnnl If-teller yr Ih,EZ Iangram in emend,Blease c:dl Ih,Fsdedvise Zmnes coordinator cf the Hawaii Dcpertmcut of Business,Economic Dcvclop—,and Tcmi.ary(DBEDTI at(8(8)58?2172. Sirl�erely. Dennis T.Ling Adniinishvinr Strategic Marketing&Support Division I. 44 .d khL 91 ER ISE IMMIM ANNUAL CERTIFICATION ornmunities by helping businesses Earn > 50% annual gross receipts from one or more of the EZ eligible activities from transactions occurring within the zone (value-added retail, wholesale, sales) Increase staff — existing business example starting with 10 employees. Yep % increase in number of Number of employees employees 1 +10% 11 2 maintain 11 3 maintain 11 __________________ ____________ ---------------------------------- 4 ________________4 +15% 12.5 5 +15% 14 6 +15% 15.5 7 +15% 17 P! h, A L ENTERPRISE M 1 ANNUAL CERTIFICATION etping communities by he[ping businesses Increase staff — new business example starting with 10 employees. Years % increase in number of Number of employees employees 1 +10% 11 2 maintain 11 -------------------------------------------------------------- 3 maintain 11 4 maintain 11 ------------------------------ 5 maintain 11 6 maintain 11 7 maintain 11 B6 N NEIL ABERCROMBIE DEPARTMENT OF BUSINESS, Ric NAROCIM G L , t ECONOMIC DEVELOPMENT&TOURISM d ENTERPRISE 9so"rb ore sheer abFoo, o"o " a.a 899,3 Pbo 909,5992351. 5 � Web rte'.www bawa'gov/dbetll Honor u.He�ie 98804 (809,598 23]r Hetping communities by helping businesses HAWAII ENTERPRISE ZONES(EZ)PROGRAM BASIN ESS UERTIVICATION Thank you for completing and retuning your Hawaii Enterprise Zones Progrma"End-o1= Year" report lone. Your report has been in and this is to notify you that your firm, ALOHA COMPANY END OF Y -HAS- satisfied the EZ Program hiring mrd gross mecipts requirements fire the tar year ending CERTIFICATION December 31,2011. fibs means your c has gratified for the EZ program state tax benefits, as well as any EZ benefits offered by yourur county. You may now claim these benefits when you file your state income tax return mud general excise tax reconciliation form. Copies of this certification form should he attached to your general LETTER excise mid state income tax forms when they are filed. Also please l sureto write n.the mnount of general excise tax vow,firm is exempt from on the encu aal excuse tax form. You will also need to include State ofHai Tax Department Form 756 with your state income tax return il f ou are clamming the EZ income lax credits. You should consult your Coum v EZ Coordinator for instructions on how to claim any—inty EZ benefits. Date: Dennis T.Ling Admntistrator Strategic Marketing&Support Division A b6 Am 11L ENTERPRISEU00"34, 91 LEGISLATIVE CHANGES Helping communities by helping businesses V Agricultural businesses May increase gross sales by 2% annually rather than the hiring requirements May use income from value-added products (retail and wholesale) toward certification Force majeure 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. • 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 toward qualification requirements. Medical marijuana dispensary activities shall not be considered an eligible business activity AL upp7hill ENTERPRISE UJI HAWAII STATE AND COUNTY ENTERPRISE ZONE Helping communities by helping businesses COORDINATORS CONTACT INFORMATION State of Hawaii Department of Business, Economic County of Hawaii Department of Research and Development& Tourism Development P.O. Box 2359 25 Aupuni Street, Room 1301 Honolulu, Hawaii 96804 Hilo, Hawaii 96720 "ark I. Ritch;, Jane Horike Phone: (808) 587-2785 Fax: (808) 586-2589 Phone: (808) 961-8496 Fax: (808) 935-1205 Email: mark.j.ritchie@hawaii.gov Email: jane.horike@hawaiicounty.gov Wayne Thom Phone: (808) 587-2757 Fax: (808) 586-2589 Email: wayne.k.thom@hawaii.gov Lyle H. Fujikawa Phone: (808) 587-2774 Fax: (808) 586-2589 Email: lyle.h.fujikawa@hawaii.gov ENTERPRISE f Hetping communities by helping businesses Kauai Niihau t6 Molokai Oahu _ Maui State of Hawaii Lanai Enterprise Zones (EZ) Other census tracts eligible Kahoolawe for inclusion in the EZ Hawaii N 0 25 50 Miles 60 111,pwaapmddf,bb" llndl rme' g(OPStoyP nn,n,p oses. 1l1 1 et ry obey p mnonnofodefpana�a°awmbtbnond the��m�mdonaofthedam Amo,anon egabngeomwmnondaeanda my HAWAII �da�1p�enedandeodm�ned�moP 5G j"S E°rePS Zoo p,OazOnea_oaEor2000Ce .arm, PROGRAM ehgioiel-ensus ra�aia�bscenaaaearea,,2000. Hawaii Counter NOR--knHALjA Enterprise Zones(F7; Helping communities by helping businesses i" HAN AKUR Igo I •:�,ip-ax,CIr, M B" �F'a r�o-*'+n r+atlyxN k?/, 0 pqL.^, 4.rnlGhw y.r�rp•�ra.Nrm�ru xve+.r ��UaUw a 0 5 10 20 HAWAII A TFV.Y6[ w F+�*we ur rr rc ar�rs rear.r.V Mllrs PRr]f Rhh.l Awf nr ]GHT7�h_Y.`ri Re meBaanUry Hamakua EZ killHawaii County a 3 ,a ENTERPRISE MOM I mke I ErterptlseZane HeLping communities by hetping businesses "� PYam y 1+x'7 b F�9 proms n roJtl M d W tr muni-r r�- Pr.kfe�.«okx apil��bry� @�b.kdcr�dk��Y Yrlmnita mP NkG mnpkW.di. doOanY d It.M.to—d.d—b edlmd iwn OP MW M.M10=434-014 MW a.r I29Pn4 W A V � d r' k�k.lwa�tlr mm w�no�rrnd•tl�W�raneks..Lxarv.r Sc]kLMs Y.urrb u.,mara.,v dtbr�.drr d•d.s Trae]@g1,Wrak krxwd:.tl 1Aa u m k ..b YY oma Po r....kiYO`cm.WYtabgWtamxr�anok.eb..rr a nom.�v�k�...bu.or P7>ee ks..p..rrwm.�cl..tw.krab� wNAhmV LMM m d.Tlm PLcd MMtmo kruobtr.kik Woo a rcNh rb1 k000rm d.buddy al 6..Tmd Mo.ZM t—khio--d—d-t/m"M.—W famVkor M b000dwr.It m h3ftm o rty rdk k n Nd It.bo drry ot'Cm7�Ab.iMwhm h kd mrd.r IF-d k—.M dam.h.—b.arta—TmdPls 2L9L^.h—ktdk—mrd.rk vM krr..bwiih WC�dint7�k h r d hkw.mxbxihdardob Pardq-- M+d.o•.zcr tw.mr.tw.ktre,n 0ard..k ma.o:rr rade.hyeriy Pd�c wall It Hilo-Puna EL Hawaii County ENTERPRISE +� �� Enterpnse Zone Helping communities by helping businesses -- CT 2x7.02 fs nvt M the En6erprlse Zane Hawai i MMMM Map Area fT II I y i r -•IJk-Rhrn Q� nA�T—nmm� ,"h rd ve+o+* 6 2.5 5 �leepL..wefM1"d.Lia vM k rt..ft d.indn..d.-W C—Tf.d'999ffi ne ZL2.m I I I I .n eh.e.�kr..dwn bbr..trt tt.Fk..at.Voforo_Fa.lfw.4 P.k E.nary.IC..hLtra ILwnJ M11es 4.'.Ixrs E...ary.Uni 1Vdo ILS.BPv.ftr�Pa.m,.•tir.�[n.M¢dx.�rc.n�_l r..L 'nc:]AY.M1 bb.w oufw W�b 11.b.nacy a r...,,.Tra-1 S In]T 3—®c'¢b—f tr....X ic{ dad.d*wN k—t..N.PUL MLM.I.NanAm T5h—p...PLaYd:p L.OM.N wn..olrc..,IM oL*.asM IrH k rt...h ra..'I.wIW�Yalrki by rc.LA.II kal k�cw rhom lPl f.aM IPI merry ki.r- I.dvly bM d.f3. tk� Ok-i m.a hM s kl.....fa.ih C--T..¢2m L'"I k H/LMI'U1511 ti�.h r.. d -.n.ru.tim h.1— k. d.r_vr+.don N dbf furry.I I d—�n.+m.06 Mr Tnd']m sunwoc■W �ti�sadrb,W-�.�m w+.+wkbixn n.edbw.h�r.rc dr. nr[Pdrti.Caa'L.Te.¢]m.m pw3e�w. ■ 1.Job.p.�kba adWod Fm DP ."-i S.,I Mrs SV,W pd-PA.rd f ftu IL:m—kdLbd nYh Mho 41—Inh-2-- VSAf1rG:wns 4V�N, M-a-mr-M-0Y I ENTERPRISE Heaping communities by he[ping businesses { t f. Kau EZ Hawaii County ErflerVISeZDne rt4�kl f 11�� Hawaii 0 5 10 I I Miles FJaa�:aa f-�mp ars ponssi be ]fry mf X doJtl nvl bF�c tr bv�d•Y rte- _ _ f� lbll Ot.dh. dost—.lq opt— .t .1k-ft lyd 1-U R—k.N M.—'hb--cam Ktf r.W 5TA � II�kRfil-.,pkb ft 1fIm1�Ya ST ATISYW! Iy1�L¢alfr�fom lYY.iY:a¢anC/# 04-h bn�dvrp rstEblv�mTxfrttl�Xappra_o�1nAw[:art+Nanptmx! �d ft —do.ft—t-01' .h�-.r—.yF tax Xa_1and Ian b—rq II Polar cW ."sal R—bttl F _ ftft N. =14120-01-0Y. ft bn� ,tx tl N.—w N1 F 14.—x .fl tc —t-dy a. -.war.. t�O 1zO a bC't¢Wt�.n ba Mpg w, Kana EZ Hawaii County ENTERPRISE EnwgxeeZone Heaping communities by helping businesses � r _ s f f �"�3'eY311 �0i -ti MbP ti�.� u°°y S 1 G I I I 1 Mlli+ GFni-Fal.rrrrubmtx T Lhreft),'Y.AlOMmrd ITADL30l1LYa....;dmb ai }7 _ y 0 Y.Y-nx Lvrv�.L� xtx+a.r.—P C. mil hTFA- }'+l = Y—..IT"-i]C ad7�7g071sr¢Faxr Yr�u blYf�b9 tlsgpk4.•••.•tir? i 4.2 I—,.=.*—h hen brx r-0Im rr�Mtlh�Y K—Ford hx-••... x rrt—y -:rvwaMUIF4Glmma .!grl,=n��:Lrllb l4rrI 1.'L-!-" � rcryr L!�F..l4 b-- xrrt+ri. b.—,Wih�[P.- •— .......... I ;. F.Y wwc r'Y(aac,l nnw-a 7k1CY�h bv�cx L.l umllh rt�ah lfir PK':-f ...�• ° / tiFaWr A � . > X race�N a_..d lel Ia,vrr bm pndlla�o''*"�.'I.r.. hryv�d WJ WAL11 L.mrm,.NL- d" hft—b- *._4 P l%r.0 A A Ad YiPfb SI6%VZkE4)S ..__ qp L'rb 12mla A 1116 An North Kohala EZ Hawaii County - - t _ Enterprise Zooe ENTERPRISE Area to be lost due to Helping communities bar helpin businesses ®from 201 change f TransboTract undary Kohala Forest Reserve Boundary \ r Conservation District Boundary 0 2.5 5 Miles l �� Hawaii Map 1 /i Area Jr walcahoehoDG�lch Th p I,=OR a.or i •.� 1 PI p(OP ,Fiann it.—-ng ocrpases pl sed far boundary-nle. IId or other sanalysts beyond O� HAWAII m It,IbWns onhepatial as t bbrmauan 5regard'ng comp G Sdagon dales e M accuracy d 1 �r d2y the data presented caneeobtained from 0P. \. a _p PROGRAM A1ap No..20190506-01 DK rKe or avxwrc Map Date.D6/C6119 aww Qa Qp • Mamaevva Gulch, North Kohala E2: ♦� is J, Spencer 13eac17 Park'Rd �. ( � y ' _ Beginning at the maslline where it meets with Kohala hthe Forest Reserve(Pablo 6ectfdlows south bn, Akonl Pule H:�y ( �,fi. - to the State Conrmatbn DlsMct boundary where it meets Waipahoehoe Gulch.It then follows _ southwesterly unti it meets Kohala Mountain Rd,where l t follows southeast until it meets PaibaeL - Gulch,where it follows southwest unto it meets with Arnim Pule Hwy,where n follows northwest until it Ka'.valhae Rd meets who TMK 3611 boundary,where it follows southwest to the coaddi am then follows - clockwise 3long the coastline to the begiming polo[. 111v'd,61 ENTERPRISE MZLMA Hetpineg communities by helping businesses ✓The re-desi nation of No. Kohala Enterprise Zone is for a 20 year g p Y period. ✓Businesses will be able to enroll in the Program without a break. ✓ Businesses formed after March of 2000 will participate in the Program as a New Business. 1p! hill ENTERPRISE NEGM HeLping communities by helping businesses MAHA 0 of