Industrial development bonds:
Special-purpose revenue bonds for manufacturing, processing, industrial enterprises, and healthcare facilities provided low-interest financing. The bonds cover all costs associated with the construction of a facility. The term of the bond issue may not exceed 40 years. Unlike industrial development bonds in some states, these special purpose revenue bonds must be approved by the state legislature for each individual project. Special purpose revenue bonds are also available for utilities providing energy or gas, and may be issued for terms not to exceed 30 years.
The Community-Based Economic Development (CBED) program offers grants and technical assistance to nonprofit, geographic, cultural, or economic-based community groups. These groups develop sustainable business ventures that serve local needs and are compatible with the vision, character, and cultural values of their communities.
Investment attraction program:
The Hawaii Investment Attraction Program matches investors from the U.S. mainland and overseas with Hawaii-based companies seeking startup or expansion capital. The program encourages job-creating investments, helps direct new investment to targeted employment areas, and supports industries the state seeks to nurture. In accordance with the immigrant-investor provisions of the U.S. Immigration Act of 1990, the Department of Business, Economic Development & Tourism (DBEDT) has specified areas of high unemployment and rural areas where an investment of $500,000 and creation of 10 new jobs are sufficient to qualify for a U.S. permanent resident visa. The targeted employment areas include all neighbor islands and several portions of Oahu.
Other financing programs:
The Hawaii Strategic Development Corporation (HSDC) works with the state's private sector to form investment limited partnerships managed by venture capitalists. HSDC invests with private investors in venture capital funds, which in turn invest in high-growth businesses. The state and the investors are then limited partners, while day-to-day operations are managed by the general partners. The corporation has a $14 million revolving fund for investment. The types of businesses given priority for financing are those involved in innovation and high technology.
The Hawaii High Technology Development Corporation (HTDC) may issue up to $100 million in special facility revenue bonds to build infrastructure for technology companies and may issue special-purpose revenue bonds to finance industrial parks or a multi-project program.
The Hawaii Small Business Innovation Research Grant Program provides additional funding of up to $25,000 for Hawaii recipients of federal Phase 1 SBIR awards. This enables more resources to be dedicated to the effort and improves the business' chances of continued federal funding.
The Hawaii Internet Tax Freedom Act has imposed a moratorium on any "discriminatory tax" on electronic commerce or Internet access under the income tax law, general excise tax law, and use tax law for six years starting in 2000.
Investors in qualified high-technology businesses may claim a 100 percent tax credit over a five-year period. This credit may be used by individuals, businesses, banks, and insurance companies. Enterprise zone tax benefits may be received by manufacturers, wholesalers, agriculture producers and processors, and certain high-technology businesses that are located in one of the 19 zones across the state.
Hawaii State Contact Information:
State of Hawaii
Department of Business, Economic Development and Tourism
State of Hawaii
P.O. Box 2359
Honolulu, HI 96804
Fax: (808) 586-2427
Incentive and tax information is provided to Area Development by each state's economic development or commerce agency for information purposes only and is subject to revision at any time by the state government. Please contact the state agency directly for full requirements and offerings.