HB 2659 Summary

• Establishes a temporary Kapolei jobs initiative tax credit for qualified businesses that establish new locations or expand existing operations in zip codes 96706 and 96707 (Kapolei region)

• Tax credit percentages decline over five years, starting at 80% of net income tax liability and unemployment insurance in year one, decreasing to 40% by year five

• Qualified businesses must have minimum 10 full-time employees, pay at least $73,000 annual salary to half their workforce, earn at least half revenue from the Kapolei location, and cannot participate in the state enterprise zone program

• Limits program to maximum 20 new qualified businesses per calendar year, with no credits allowed after December 31, 2023

• Requires qualified businesses to preregister with the Department of Business, Economic Development, and Tourism and submit annual sworn statements reporting expenditures, employment data, and wages; program expires December 31, 2028