Hawaii 2024 Regular Session

Hawaii Senate Bill SB2625

Introduced
1/19/24  
Refer
1/24/24  
Introduced
1/19/24  

Caption

Relating To Opportunity Zones.

Impact

If enacted, SB2625 would amend Hawaii's tax code, specifically chapters 235 and 237 of the Hawaii Revised Statutes. By doing so, it seeks to enhance the fiscal environment for businesses within opportunity zones, thereby promoting economic growth. State officials anticipate that the financial relief introduced by this bill could stimulate entrepreneurial activity and reduce unemployment rates in targeted regions. This could lead to broader economic benefits for the state as a whole, boosting local economies.

Summary

Senate Bill 2625 aims to provide significant tax incentives for businesses operating within federally designated opportunity zones in Hawaii. The bill proposes a temporary exemption from general excise and income taxes for these businesses for a duration of five years. Additionally, it permanently exempts businesses located in opportunity zones from required unemployment insurance contributions. This legislation aligns with national efforts to boost economic development in underserved communities by encouraging investment and job creation within specified geographic areas.

Contention

Despite its potential benefits, the bill has faced scrutiny over concerns regarding its long-term effectiveness and implications for state revenue. Critics argue that the significant tax exemptions could lead to a reduction in fiscal resources available for public services. Moreover, there are questions about whether the bill will sufficiently incentivize businesses to invest in opportunity zones without creating disparities in economic benefits, particularly if wealthier areas are also designated as opportunity zones.

Companion Bills

HI HB1618

Same As Relating To Opportunity Zones.

Previously Filed As

HI HB1618

Relating To Opportunity Zones.

HI HB261

Relating To Early Learning Opportunities.

HI HB261

Relating To Early Learning Opportunities.

HI SB1610

Relating To Ohana Zones.

HI SB00570

An Act Concerning Opportunity Zones.

HI SB125

Relating To State Enterprise Zones.

HI HB3621

INC TX-OPPORTUNITY ZONES

HI HB1369

Relating To Taxation.

HI AB3030

California Environmental Quality Act: exemption: qualified opportunity zones.

HI HB842

Revise allocation of marijuana tax revenue for psychiatric opportunity zones

Similar Bills

HI HB1618

Relating To Opportunity Zones.

NJ S723

Creates "New Jersey Domestic Workers' Bill of Rights Act."

NJ A822

Creates "New Jersey Domestic Workers' Bill of Rights Act."

NJ A4047

Revises unemployment compensation law.

NJ S2949

Revises unemployment compensation law.

MS SB2819

Unemployment compensation; MDES Unemployment Data Fraud Prevention Program.

NJ S1100

Creates "New Jersey Domestic Workers' Bill of Rights Act."

OK SB794

Oklahoma Employment Security Commission; deleting gender references; making e-file preference for filing; benefit eligibility; overpayments. Effective date.