All Roll Calls
Yes: 220 • No: 1
HawaiiSB 23602025–2026 Regular Session (Year 2)SenateWALLET
RELATING TO STATE ENTERPRISE ZONES.
Sponsored By: Lynn DeCoite (Democratic)
Signed by Governor
Summary
Amends the definition of "eligible business activity" for the purposes of the Enterprise Zone Program to include certain retail sales of tangible personal property, processing of certain value-added agricultural products, the Hawaii food and product innovation network, and the provision of certain professional services by health care professionals. For taxable years beginning after 12/31/2026, extends the eligibility period of the state business tax credit for qualified businesses within state enterprise zones. Beginning 1/1/2028, extends the eligibility period of the general excise tax exemption for qualified businesses within state enterprise zones. Applies to qualified businesses who join the Enterprise Zone Program on or after a specific date. Effective 7/1/3000. (HD1)
DBEDTDOTAXState Enterprise ZonesQualified BusinessState Business Tax CreditGeneral Excise TaxEligible Business ActivitiesInnovation EnterprisesRetail SalesValue-Added Agricultural ProductsHawaii Food and Production Innovation NetworkHealth Care ServicesExemptionExtensionComprehensive ReviewReportECD, AGR, FIN
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 2 benefits, 0 costs, 2 mixed.
More businesses qualify for zone benefits
The law expands eligible activities to include local manufacturing and retail sales of goods made in the zone, agricultural processing, health care, biotechnology, food innovation, aerospace research, and information technology design and production. Medical cannabis dispensaries remain ineligible. Hawaii can also designate up to two census tracts on state land as enterprise zones if they contain an innovation enterprise and the governor approves.
Longer tax credits for zone businesses
Businesses designated as qualified on or after July 1, 2026, can claim credits equal to 20% of eligible state taxes in years seven through nine. The state tax credit excludes general excise tax, and the credit schedule applies to tax years beginning after December 31, 2026. Manufacturers and businesses producing or processing agricultural products can also claim 20% credits in years ten through twelve. A separate credit applies to unemployment taxes paid. Unused credits cannot be carried forward.
Hiring targets shape business tax credits
For businesses designated as qualified on or after July 1, 2026, average full-time employment must grow by at least 10% by the end of year one. It must grow by at least 15% by the end of each year from year four through year nine. Businesses claiming credits after year nine must maintain that higher level. Agricultural businesses can use an alternative test: annual growth of at least 2% in gross sales of crops grown or products processed in the zone.
Longer tax breaks for zone businesses
Beginning January 1, 2028, qualified businesses can receive a general excise tax exemption for up to nine years. Manufacturers and businesses producing or processing agricultural products can receive it for up to twelve years. Licensed contractors also qualify for exemptions on proceeds from qualifying construction in a zone. Agricultural retail sales generally remain taxable, except for businesses producing genetically engineered agricultural products.
Sponsors & Cosponsors
Sponsor
Lynn DeCoite
Democratic • Senate
Cosponsors
Stanley Chang
Democratic • Senate
Brandon J.C. Elefante
Democratic • Senate
Carol Fukunaga
Democratic • Senate
Mike Gabbard
Democratic • Senate
Troy N. Hashimoto
Democratic • Senate
Michelle N. Kidani
Democratic • Senate
Rachele Lamosao
Democratic • Senate
Angus L.K. McKelvey
Democratic • Senate
Herbert M. "Tim" Richards III
Democratic • Senate
Glenn Wakai
Democratic • Senate
Roll Call Votes
House vote • 5/6/2026
House Floor Vote
Yes: 50 • No: 1
Senate vote • 5/1/2026
The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS....
Yes: 2 • No: 0
House vote • 5/1/2026
The Conference Committee recommends that the measure be Passed, with Amendments....
Yes: 5 • No: 0
House vote • 4/9/2026
House Floor Vote
Yes: 49 • No: 0
House vote • 4/7/2026
The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes ...
Yes: 15 • No: 0
House vote • 3/25/2026
The committee on AGR recommend that the measure be PASSED, WITH AMENDMENTS. The ...
Yes: 4 • No: 0
House vote • 3/20/2026
Passed Second Reading as amended in HD 1 and referred to the committee(s) on AGR...
Yes: 49 • No: 0
House vote • 3/18/2026
The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. The ...
Yes: 6 • No: 0
Senate vote • 3/6/2026
Senate Floor Vote
Yes: 24 • No: 0
Senate vote • 3/2/2026
The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. The...
Yes: 13 • No: 0
Senate vote • 2/5/2026
The committee(s) on EDT recommend(s) that the measure be PASSED, WITH AMENDMENT...
Yes: 3 • No: 0
Actions Timeline
Act 182, 07/06/2026 (Gov. Msg. No. 1284).
7/6/2026SenateAct 182, on 07/06/2026 (Gov. Msg. No. 1284).
7/6/2026HouseReceived notice of passage on Final Reading in House (Hse. Com. No. 888).
5/8/2026SenateEnrolled to Governor.
5/8/2026SenatePassed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none . 0 No(es): none. 0 Excused: none.
5/6/2026SenatePassed Final Reading as amended in CD 1 with none voting aye with reservations; Representative(s) Iwamoto voting no (1) and none excused (0).
5/6/2026HouseReceived notice of Final Reading (Sen. Com. No. 816).
5/6/2026HouseConference Committee Meeting will reconvene on Friday, 05-01-26 at 11:30AM in Conference Room 411.
5/1/2026HouseConference Committee Meeting will reconvene on Friday, 05-01-26 at 4:31PM in Conference Room 411.
5/1/2026HouseThe Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 2 Aye(s): Senator(s) DeCoite, Hashimoto; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella.
5/1/2026SenateThe Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 5 Ayes: Representative(s) Ilagan, Kusch, Hussey, Tam, Gedeon; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.
5/1/2026HouseReported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 227-26).
5/1/2026Senate48 Hrs. Notice (as amended CD 1) 05-06-26.
5/1/2026SenateReported from Conference Committee (Conf Com. Rep. No. 227-26) as amended in (CD 1).
5/1/2026HouseForty-eight (48) hours notice Wednesday, 05-06-26.
5/1/2026HouseConference Committee Meeting will reconvene on Friday 05-01-26 8:01AM in conference room 411.
4/30/2026HouseBill scheduled for Conference Committee Meeting on Thursday, 04-30-26 8:30AM in conference room 411.
4/28/2026HouseReceived notice of appointment of House conferees (Hse. Com. No. 811).
4/23/2026SenateHouse Conferees Appointed: Ilagan, Kusch, Hussey Co-Chairs; Tam, Gedeon.
4/22/2026HouseSenate Conferees Appointed: DeCoite Chair; Hashimoto Co-Chair; Fevella.
4/22/2026SenateReceived notice of Senate conferees (Sen. Com. No. 723).
4/22/2026HouseReceived from House (Hse. Com. No. 507).
4/10/2026SenateSenate disagrees with House amendments.
4/10/2026SenateReceived notice of disagreement (Sen. Com. No. 564).
4/10/2026HouseReported from FIN (Stand. Com. Rep. No. 2002-26), recommending passage on Third Reading.
4/9/2026House
Bill Text
Bill Text
Original
SB2360_CD1
SB2360_HD1
SB2360_HD2
SB2360_SD1
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