HB 1618 Summary

• Excludes businesses located within federally designated opportunity zones from Hawaii income tax (Chapter 235) for a maximum of five years.

• Exempts businesses in opportunity zones from Hawaii general excise tax (Chapter 237) for a maximum of five years, requiring registration with the department.

• Permanently excludes employees of opportunity zone businesses from Hawaii unemployment insurance contributions (Chapter 383), except for employees at business locations outside the zones.

• Defines "opportunity zone" as population census tracts in Hawaii designated by the U.S. Secretary of the Treasury under Notice 2018-48 as qualified opportunity zones under 26 U.S.C. § 1400Z-1 et seq.

• Effective upon approval for taxable years beginning after December 31, 2024.