HI HB116

Establishes a medical enterprise zone program with an initial pilot zone in west Maui to attract medical and research facilities and healthcare professionals to Hawaii through state and local incentives.

Provides qualified businesses a 25% state income tax credit for three years and exempts them from general excise and use taxes on medical services and purchases for the same period.

Requires qualified businesses to generate at least 25% of gross receipts from zone operations and increase full-time medical/research professional employees by 25% in the first year, maintaining that level thereafter.

Authorizes counties to offer local incentives including reduced permit fees, user fees, real property tax reductions, and regulatory flexibility measures such as special zoning and expedited permitting.

Creates a three-year binding commitment from the county, with the Department of Business, Economic Development, and Tourism administering the program and submitting annual reports to the legislature evaluating the pilot zone's effectiveness.