Enterprise Zones

If your business is eligible and in an EZ, you can: Reduce your taxes and receive other benefits for up to seven years!

Maui County Enterprise Zone Maps

Eligibility

To enroll in the Enterprise Zone program, at least half of a firm's annual gross income in an EZ must be from one or more of the following activities:

Agricultural production or processing;
Manufacturing;
Wholesaling/Distribution;
Aviation or maritime repair or maintenance;
Telecommunications switching and delivery;
Information technology design and production;
Medical research, clinical trails, and telemedicine;
For-profit training programs in international business management or environmental remediation;
Biotechnology research, development, production, or sales;
Repair or maintenance of assisted technology equipment used by disabled persons;
Certain types of call centers such as bill collection, technical support for computer hardware and software manufacturers, disease management services, product fulfillment services, or disaster management services;
Wind energy producers.

Other businesses are not eligible, including retail, restaurants, professional services, and construction, or construction trade contracting.

Hiring Requirements

Hiring requirements differ based on whether a firm is classified as "existing" or "new" business. All businesses must employ at least one full-time worker (20 hours or more per week)* before beginning participation. All qualified businesses must increase their average annual number of fulltime employees by 10% in the first year.

"Existing" Businesses:

Businesses currently operating in an EZ must increase their average annual number of full-time employees by at least 10% in year one, and 15% annually each year in years 4 to 7.

Example 1: Minimum Number of Employees

Start	YR1	YR2	YR3	YR4	YR5	YR6	YR7
10	11	11	11	12.5	14	15.5	17

Agriculture businesses only: In lieu of increasing staff, increase total sales by at least 2%.
Businesses which need to build out or remodel their EZ site before opening for business are exempt from this requirement until opening for business.

"New" Businesses:

Businesses that start up in, or move to an EZ must maintain at least a 10% increase in the average annual number of full-time employees from the first year in years 2 to 7.

Example 2: Minimum Number of Employees

Start	YR1	YR2	YR3	YR4	YR5	YR6	YR7
1	2	2	2	2	2	2	2
10	11	11	11	11	11	11	11

Agriculture businesses only: In lieu of increasing staff, increase total sales by at least 2%.

Incentives

STATE: Businesses that satisfy the gross receipts and hiring requirements each year receive the following tax benefits for seven consecutive years:

100% exemption from the General Excise Tax (GET)
An 80% State non-refundable income tax credit the first year, declining by 10% each year for the next six years.

An additional State non-refundable income tax credit equal to 80% of Unemployment Insurance premiums paid the first year, declining 10% each year for the next six years.
Prior to July 1, 2011, licensed contractors were exempt from GET on revenue from construction done at the EZ site of any business enrolled in the EZ Partnership.

NOTE: The two income tax reductions combined cannot exceed 100% of income tax due.

COUNTY: Each county will offer eligible businesses additional benefits that may include one or more of the following:

Priority permit processing
Zoning or building permit waivers or variances
Property tax adjustments
Priority consideration for federal job training or community development funds

EZ Program Information

How to Apply

Contact your County coordinator of the State EZ coordinator for assistance in determining if your business is eligible and located in an EZ.

For more information visit the State of Hawaii's Business Development and Support Division