The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the House Committee on Finance on March 28, 2025.
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March 28, 2025, 3:30 p.m.
Hawaii State Capitol
Conference Room 308 and Videoconference
To: House Committee on Finance
Rep. Kyle T. Yamashita, Chair
Rep. Jenna Takenouchi, Vice Chair
From: Grassroot Institute of Hawaii
Ted Kefalas, Director of Strategic Campaigns
RE: SB125 SD2 HD1 — RELATING TO STATE ENTERPRISE ZONES
Aloha Chair Yamashita, Vice-Chair Takenouchi 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. SB125 SD2 HD1 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.
We all know that Hawaii is ranked among the worst states in which to start a business,[1] but this bill could help improve that situation by reducing the cost of doing business for many 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.
