PARTNERSHIP PROGRAM
“Helping Communities by Helping Businesses”
Enterprise Zone Partnership Program
Overview
1.
2.
Introduction-Program Overview
Joining the EZ Program
a. Who can join
b. Benefits for joining
3.
Annual Certification
a. Requirements for certification
b. Benefits for certification
Enterprise Zone Partnership Program
1. OVERVIEW
The Enterprise Zones (EZ) Partnership Program is a
joint state-county government initiative:
• to encourage certain types of businesses
• enhance job creation in economically depressed
areas (targeted areas)
• reduce taxes
• counties may provide additional benefits
Enterprise Zone Partnership Program
2. TO JOIN THE EZ PROGRAM
1) Must be located in an EZ designated zone
2) Earn half of annual gross receipts from one or
more of the EZ eligible activities
3) Employ at least one full-time worker
(Full-Time = 20 or more hours per week, can
count leased employees)
ELIGIBLE ACTIVITIES
• Agricultural production or processing (wholesale,
value-added retail ag*, GMOs)
• Manufacturing (wholesaling)
• Wholesaling/Distribution
• Biotechnology research, development, production, or sales
• Aviation or maritime repair or maintenance
• Telecommunications switching and delivery systems
• Information technology design and production
• Medical research, clinical trials, and telemedicine
• For-profit training programs in international business
management or environmental remediation
• Repair or maintenance of assistive technology equipment
• Certain types of call centers
• Wind energy producers
Enterprise Zone Partnership Program
STATE INCENTIVES-BENEFITS FOR JOINING
Licensed contractors and sub-contractors are
exempt from GET on construction done
within EZ for an EZ-qualified business.
For every $100,000 spent saves you $4,712!
COUNTY INCENTIVES-BENEFITS
Priority business
permit processing
1. 2-Year property
tax rebate
2. Waiver grading &
permit fees
1. Waiver of business permit
fees
2. Priority consideration when
processing business permits, &
granting zoning waivers
3-Year property
tax rebate
Approval Letter
Enterprise Zone Partnership Program
3. ANNUAL CERTIFICATION
1. Earn > 50% annual gross receipts from one or more of the EZ eligible activities
from transactions occurring within the zone (value-added retail, wholesale,
GMO sales)
2.
Increase your staff
a) ‘Existing’ Business
Ex.:Start with 10 Emps
Yr 1 10% increase from application*
Yr 2
Yr 3
Yr 4
Yr 5
Yr 6
Yr 7
(maintain)
(maintain)
+ 15% add to Year 3
+ 15% add to Year 4
+ 15% add to Year 5
+ 15% add to Year 6
(10% = 1)11 Emps
11 Emps
11 Emps
12.5 Emps
14 Emps
15.5 Emps
17 Emps
‘Existing’ Ag businesses just need to increase their gross sales by 2% each year!
* Increase staff by 10% with a minimum of 1 employee
Enterprise Zone Partnership Program
3. ANNUAL CERTIFICATION
2.
Increase your staff
b) ‘New’ Business
Ex. Start with 10 Emps
Yr 1 10% increase from application*
(10% x 10 = 1) 11 Emps
Yr 2
Yr 3
Yr 4
Yr 5
Yr 6
Yr 7
11 Employees
11 Employees
11 Employees
11 Employees
11 Employees
11 Employees
-
‘New’ Ag businesses just need to increase their gross sales by
2% each year!
* Increase staff by 10% with a minimum of 1 employee
Enterprise Zone Partnership Program
STATE INCENTIVES-BENEFITS FOR CERTIFICATION
1. 100% Exemption from General Excise Tax on revenues from
EZ eligible activities (not incl. value-added retail ag).
2. 80% reduction of state income tax the first year, declines
10% each year for years 2-7.
3. Additional reduction of state income tax equal to 80% of the
unemployment insurance premiums paid in the first year with a
10% reduction each year for years 2-7.
Year
State Income Tax
Credit
Unemp. Insurance
Add'l Income Tax
Credit
1
2
3
4
5
6
7
80%
70%
60%
50%
40%
30% 20%
80%
70%
60%
50%
40%
30% 20%
In the event of a natural disaster, contact us ASAP!
You may still receive benefits without certification, and can extend your 7 years.
LINDA LINGLE
GOVERNOR
THEODORE E. LIU
DIRECTOR
MARK K. ANDERSON
DEPARTMENT OF BUSINESS,
ECONOMIC DEVELOPMENT & TOURISM
End-of-Year Certification
Enterprise Zones
No. 1 Capitol District Building, 250 South Hotel Street, Room 503, Honolulu, Hawaii 96813
Mailing Address: P.O. Box 2359, Honolulu, Hawaii 96804
Web site: http://www.hawaii.gov/dbedt/business/programs/ez
DEPUTY DIRECTOR
Telephone:
Fax:
(808) 586-2593
(808) 586-2589
HAWAII ENTERPRISE ZONES (EZ) PROGRAM
BUSINESS CERTIFICATION
Thank you for completing and returning your Hawaii Enterprise Zones Program "End-of-Year"
report form. Your report has been reviewed and this is to notify you that your firm,
ALOHA COMPANY
-HASsatisfied the EZ Program hiring and gross receipts requirements for the tax year ending
December 31, 2006. This means your firm has qualified for the EZ program state tax benefits,
as well as any EZ benefits offered by your county.
You may now claim these benefits when you file your state income tax return and general excise
tax reconciliation form. Copies of this certification form should be attached to your general
excise and state income tax forms when they are filed. Also please be sure to write in the
amount of general excise tax your firm is exempt from on the general excise tax form. You will
also need to include State of Hawaii Tax Department Form 756 with your state income tax return
if you are claiming the EZ income tax credits. You should consult your County EZ Coordinator
for instructions on how to claim any county EZ benefits.
____________________________________
Thomas J. Smyth
Branch Chief
Date:_______________
Enterprise Zone Partnership Program
Summary
I. EZ Program Enrollment
1. Located in a designated Enterprise Zone
2. Eligible business
3. Employ at least one full-time person
II. EZ Annual Certification
1. 50% from eligible business in EZ
2. Hiring requirements “new” business
3. Hiring requirements “existing” business
III. Helps to reduce expenses
1. Income tax credit
2. Unemployment insurance credit
3. GE tax break (on revenues and construction)
4. May have additional county benefits
EZ PROGRAM COORDINATORS
STATE
Michelle Muraoka
KAUAI County
George Costa
OAHU County
Dane Waltjen
MAUI County
Deidre Tegarden
BIG ISLAND County
Jane Horike
Tel: (808) 586-2593
Tel: (808) 241-4949
Tel: (808) 592-8630
Tel: (808) 270-7710
Tel: (808) 961-8496
Website: http://www.hawaii.gov/dbedt/business/programs/ez