PARTNERSHIP PROGRAM “Helping Communities by Helping Businesses”

Overview 1.Introduction-Program Overview 2.Joining the EZ Program a. Who can join b. Benefits for joining 3.Annual Certification a. Requirements for certification b. Benefits for certification Enterprise Zone Partnership Program

1. OVERVIEW The Enterprise Zones (EZ) Partnership Program is a joint state-county government initiative: to encourage certain types of businesses enhance job creation in economically depressed areas (targeted areas) reduce taxes counties may provide additional benefits Enterprise Zone Partnership Program

2. TO JOIN THE EZ PROGRAM 1) Must be located in an EZ designated zone 2) Earn half of annual gross receipts from one or more of the EZ eligible activities 3) Employ at least one full-time worker (Full-Time = 20 or more hours per week, can count leased employees) Enterprise Zone Partnership Program

ELIGIBLE ACTIVITIES Agricultural production or processing (wholesale, value-added retail ag*, GMOs) Manufacturing (wholesaling) Wholesaling/Distribution Biotechnology research, development, production, or sales Aviation or maritime repair or maintenance Telecommunications switching and delivery systems Information technology design and production Medical research, clinical trials, and telemedicine For-profit training programs in international business management or environmental remediation Repair or maintenance of assistive technology equipment Certain types of call centers Wind energy producers

STATE INCENTIVES-BENEFITS FOR JOINING Licensed contractors and sub-contractors are exempt from GET on construction done within EZ for an EZ-qualified business. For every $100,000 spent saves you $4,712! Enterprise Zone Partnership Program COUNTY INCENTIVES-BENEFITS

3-Year property tax rebate 1. Waiver of business permit fees 2. Priority consideration when processing business permits, & granting zoning waivers 1. 2-Year property tax rebate 2. Waiver grading & permit fees Priority business permit processing

Approval Letter

3. ANNUAL CERTIFICATION 1. Earn > 50% annual gross receipts from one or more of the EZ eligible activities from transactions occurring within the zone (value-added retail, wholesale, GMO sales) 2.Increase your staff a) ‘Existing’ Business Ex.:Start with 10 Emps Yr 1 10% increase from application* (10% = 1)11 Emps Yr 2 (maintain) 11 Emps Yr 3 (maintain) 11 Emps Yr % add to Year Emps Yr % add to Year 4 14 Emps Yr % add to Year Emps Yr % add to Year 6 17 Emps * Increase staff by 10% with a minimum of 1 employee Enterprise Zone Partnership Program ‘Existing’ Ag businesses just need to increase their gross sales by 2% each year!

3. ANNUAL CERTIFICATION 2.Increase your staff b) ‘New’ Business Ex. Start with 10 Emps Yr 1 10% increase from application* (10% x 10 = 1) 11 Emps Yr Employees Yr Employees Yr Employees Yr Employees Yr Employees Yr Employees * Increase staff by 10% with a minimum of 1 employee Enterprise Zone Partnership Program ‘New’ Ag businesses just need to increase their gross sales by 2% each year!

1. 100% Exemption from General Excise Tax on revenues from EZ eligible activities (not incl. value-added retail ag) % reduction of state income tax the first year, declines 10% each year for years Additional reduction of state income tax equal to 80% of the unemployment insurance premiums paid in the first year with a 10% reduction each year for years 2-7. STATE INCENTIVES-BENEFITS FOR CERTIFICATION Enterprise Zone Partnership Program In the event of a natural disaster, contact us ASAP! You may still receive benefits without certification, and can extend your 7 years.

End-of-Year Certification

Summary I. EZ Program Enrollment 1. Located in a designated Enterprise Zone 2. Eligible business 3. Employ at least one full-time person Enterprise Zone Partnership Program II. EZ Annual Certification 1. 50% from eligible business in EZ 2. Hiring requirements “new” business 3. Hiring requirements “existing” business III. Helps to reduce expenses 1. Income tax credit 2. Unemployment insurance credit 3. GE tax break (on revenues and construction) 4. May have additional county benefits

EZ PROGRAM COORDINATORS STATE Michelle Muraoka Tel: (808) KAUAI County George CostaTel: (808) OAHU County Dane Waltjen Tel: (808) MAUI County Deidre Tegarden Tel: (808) BIG ISLAND County Jane Horike Tel: (808) Website: