TheBuzz
TheBuzz
Two new business enterprise zones have been established on Oahu, and due to increased demand, existing zones on the Big Island may soon expand. Getting in the zone
-- the enterprise zoneParticipation must pass the muster of tight restrictions, but it offers incentives such as a 100 percent exemption from state general excise tax and use tax for each of seven years, as well as additional state income tax reductions. Contractors involved in new construction for enterprise zone businesses also receive a tax exemption. Eligible businesses must derive at least half their annual gross income from agriculture, manufacturing, certain types of high-tech or other operations. Participation also means different levels of increased hiring for new and existing businesses.
The new Oahu zones have been in existence for about a month, but have yet to be announced, according to state Economic Development Specialist Tom Brandt.
"The newest zone is the big chunk of land from the airport to parts of Kakaako," he said. The other extends from the Kapolei/Campbell Industrial Park area and runs up the Leeward Coast. "It includes most of the 'ag' and commercial areas on the Leeward Coast," Brandt said.
His Big Island counterpart, Economic Development Specialist Jane Horike, said she has been seeking to expand the county's existing enterprise zones in response to requests from businesses. She also receives inquiries from commercial real estate agents, who view the enterprise zone status of available land as a selling point to certain clients.
The purpose of an enterprise zone, she said, "is basically to stimulate business activity and create jobs in areas with low-income residents or high unemployment."
Information on eligibility and requirements is on the state Department of Business, Economic Development and Tourism Web site at www.hawaii.gov/dbedt, with a click on the "Investing in Hawaii" link, or by calling 586-2593.
Horike said economic conditions have recently made it difficult for many businesses to swallow the increased hiring requirement.
"However, with the economic picture looking brighter at this point, I've been getting a lot of calls from businesses outside the boundaries that want to participate," she said.
Erika Engle is a reporter with the Star-Bulletin.
Call 529-4302, fax 529-4750 or write to Erika Engle,
Honolulu Star-Bulletin, 500 Ala Moana Blvd., No. 7-210,
Honolulu, HI 96813. She can also be reached
at: eengle@starbulletin.com