HB 1711 Summary

• Designates all eligible homestead lots awarded under the Hawaiian Homes Commission Act, 1920, as state enterprise zones for twenty years to provide business incentives in native Hawaiian communities.

• Creates separate eligibility requirements for businesses on homestead lots that exempt them from existing enterprise zone qualification requirements, requiring only that businesses begin operations in an eligible activity and maintain 50% of gross receipts from enterprise zone operations within the same county.

• Removes employment growth requirements (10-15% increases) and gross sales growth requirements (2% annually) that apply to businesses in traditional enterprise zones, streamlining qualification for homestead lot businesses.

• Extends state tax incentives to qualified homestead lot businesses including general excise tax exemption, non-refundable income tax credits, priority business permit processing, and waiver of permit fees.

• Findings note native Hawaiian median household income on homestead lots was approximately $8,000 lower than the state median in 2020, and current enterprise zones exclude the majority of homestead lots, limiting business development opportunities.