PARTNERSHIP PROGRAM “Helping Communities by Helping Businesses”

PARTNERSHIP PROGRAM

“Helping Communities by Helping Businesses”

Overview

1. Introduction-Program Overview

2. 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


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

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

3-Year property tax rebate

1. Waiver of business permit fees

2. Priority consideration when processing business permits, & granting zoning waivers

1. 2-Year property tax rebate

2. Waiver grading & permit fees

Priority business permit processing

Ap

pro

val L

ette

r

3. ANNUAL CERTIFICATION1. 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* (10% = 1)11 Emps

Yr 2 (maintain) 11 Emps

Yr 3 (maintain) 11 Emps

Yr 4 + 15% add to Year 3 12.5 Emps

Yr 5 + 15% add to Year 4 14 Emps

Yr 6 + 15% add to Year 5 15.5 Emps

Yr 7 + 15% add to Year 6 17 Emps

* Increase staff by 10% with a minimum of 1 employee


‘Existing’ Ag businesses just need to increase their gross sales by 2% each year!

3. ANNUAL CERTIFICATION2. 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 - 11 Employees

Yr 3 - 11 Employees

Yr 4 - 11 Employees

Yr 5 - 11 Employees

Yr 6 - 11 Employees

Yr 7 - 11 Employees

* Increase staff by 10% with a minimum of 1 employee


‘New’ Ag businesses just need to increase their gross sales by 2% each year!

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.

STATE INCENTIVES-BENEFITS FOR CERTIFICATION


Year 1 2 3 4 5 6 7State Income Tax Credit 80% 70% 60% 50% 40% 30% 20%Unemp. Insurance Add'l Income Tax Credit 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.

En

d-o

f-Y

ear

Cer

tifi

cati

on

LINDA LINGLE GOVERNOR

THEODORE E. LIU DIRECTOR

MARK K. ANDERSON DEPUTY DIRECTOR

DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT & TOURISM Enterprise Zones No. 1 Capitol District Building, 250 South Hotel Street, Room 503, Honolulu, Hawaii 96813 Telephone: (808) 586-2593 Mailing Address: P.O. Box 2359, Honolulu, Hawaii 96804 Fax: (808) 586-2589 Web site: http://www.hawaii.gov/dbedt/business/programs/ez

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

-HAS- satisfied 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. ____________________________________ Date:_______________ Thomas J. Smyth Branch Chief

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 COORDINATORSSTATE

Michelle Muraoka Tel: (808) 586-2593KAUAI County George Costa Tel: (808) 241-4949OAHU County Dane Waltjen Tel: (808) 592-8630MAUI County Deidre Tegarden Tel: (808) 270-7710BIG ISLAND County Jane Horike Tel: (808) 961-8496

Website: http://www.hawaii.gov/dbedt/business/programs/ez

PARTNERSHIP PROGRAM “Helping Communities by Helping Businesses”

Documents

Transcript of PARTNERSHIP PROGRAM “Helping Communities by Helping Businesses”