The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the House Committee on Agriculture and Food Systems on March 19, 2025.
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March 19, 2025, 9:30 a.m.
Hawaii State Capitol
Conference Room 325 and Videoconference
To: House Committee on Agriculture and Food Systems
Rep. Kirstin Kahaloa, Chair
Rep. Matthias Kusch, Vice Chair
From: Grassroot Institute of Hawaii
Ted Kefalas, Director of Strategic Campaigns
RE: SB125 SD2 HD1 — RELATING TO STATE ENTERPRISE ZONES
Aloha Chair Kahaloa, Vice-Chair Kusch and other members of the Committee,
The Grassroot Institute of Hawaii supports SB125 SD2 HD1, which would expand Hawaii’s enterprise zone program.
Hawaii’s enterprise zone program provides tax reductions for businesses in a variety of industries that meet certain employment or sales metrics. The bill would make two important changes to the program.
First, it would increase the number of years that a business in the program could receive a reduction in unemployment, income and excise taxes — from seven years to nine years in most cases.
Second, the bill would expand the types of activities that are eligible for these tax reductions. The new list would include the production of value-added agricultural products, the sale of personal tangible property manufactured in the enterprise zone, certain healthcare services, advanced manufacturing and the development of cybersecurity technology.
Hawaii is already ranked among the worst states in which to start a business,[1] and Grassroot supports efforts to reduce the cost of doing business for Hawaii’s entrepreneurs.
Thank you for the opportunity to testify.
Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
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[1] Adam McCann, “Best & Worst States to Start a Business (2025),” WalletHub, Jan. 20, 2025.
