SB 125 Hawaii Senate · 2026 Regular Session

RELATING TO STATE ENTERPRISE ZONES.

Summary

Amends the definition of "eligible business activity" for State Enterprise Zone Program purposes to include retail sales of tangible personal property manufactured and sold in the enterprise zone to the final consumer, the processing of value-added agricultural products grown within an enterprise zone, the provision of professional services by health care professionals in health-care-related sectors, the use of advanced manufacturing to produce products, or the development of cybersecurity technology. Extends the eligibility period of the state business tax credit and general excise tax exemption for qualified businesses within state enterprise zones from 7 years to 9 years. Extends the eligibility period of the general excise tax exemption for qualified businesses within state enterprise zones engaged in the manufacturing of tangible personal property or the producing or processing of agricultural products from 10 years to 12 years. Makes the extension of the state business tax credit eligibility period applicable to taxable years beginning after 12/31/2025. Makes the extension of the general excise tax exemption eligibility period take effect on 1/1/2027. Effective 7/1/3000. (HD1)

Bill status passed both 4 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Mar 2025

Senate Passage

Mar 2025

House Passage

Apr 2025

Governor

Introduced Jan 10, 2025 Last action Mar 20, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

SB125_SD1 → SB125_SD2 · 4 edits

MODERATE

This bill update clarifies the definition of 'eligible business activities' for Hawaii's Enterprise Zone Program by explicitly including retail sales of locally manufactured goods, processing of value-added agricultural products, and health care professional services. It also updates the effective dates for tax credit and exemption extensions, shifting the general excise tax exemption to take effect on January 1, 2027, while maintaining the existing timeline for business tax credits.

Scope change

The bill's scope was expanded to explicitly include retail sales of tangible personal property manufactured within the zone and the processing of value-added agricultural products as qualifying activities, whereas the previous version had less explicit language regarding these specific activities.

DEFINITION

Added a specific definition for 'value-added agricultural product' to clarify that products must be processed or modified to increase economic value.

ELIGIBILITY

Modified the 'eligible business activity' definition to explicitly include retail sales of tangible personal property manufactured and sold within the enterprise zone for use or consumption by the purchaser.

TIMELINE

Changed the effective date for the general excise tax exemption extension from a future date to January 1, 2027.

TECHNICAL

Updated the bill's metadata, including the sponsor name, bill number, and version identifiers.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 4, 2025

Amended

Senate disagrees with House amendments.

upper

Apr 4, 2025

Introduced

Received from House (Hse. Com. No. 457).

upper

Apr 3, 2025

Lower · Passed

Passed Third Reading with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Woodson excused (2). Transmitted to Senate.

lower

Mar 28, 2025

Lower · Passed

The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 14 Ayes: Representative(s) Yamashita, Takenouchi, Grandinetti, Holt, Keohokapu-Lee Loy, Kitagawa, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Alcos, Reyes Oda; Ayes with reservations: none; 0 Noes: none; and 2 Excused: Representative(s) Hussey, Ward.

lower

Mar 21, 2025

Lower · Passed

Report adopted; referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Garrett, Kapela, Kitagawa, Ward excused (5).

lower

Mar 21, 2025

Committee

Reported from AGR (Stand. Com. Rep. No. 1407), recommending referral to FIN.

lower

Mar 19, 2025

Lower · Passed

The committee on AGR recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 5 Ayes: Representative(s) Kahaloa, Kusch, Lowen, Perruso, Quinlan; Ayes with reservations: none; 0 Noes: none; and 1 Excused: Representative(s) Ward.

lower

Mar 14, 2025

Committee

Re-referred to ECD, AGR, FIN, referral sheet 23

lower

Mar 14, 2025

Committee

Reported from ECD (Stand. Com. Rep. No. 1238) as amended in HD 1, recommending passage on Second Reading and referral to AGR/HLT.

lower

Mar 12, 2025

Lower · Passed

The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Ilagan, Hussey, Tam, Templo, Todd, Matsumoto; Ayes with reservations: none; 0 Noes: none; and 1 Excused: Representative(s) Holt.

lower

Mar 6, 2025

Committee

Referred to ECD, AGR/HLT, FIN, referral sheet 19

lower

Mar 4, 2025

Introduced

Received from Senate (Sen. Com. No. 93) in amended form (SD 2).

lower

Mar 4, 2025

Upper · Passed

Report adopted; Passed Third Reading, as amended (SD 2). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House.

upper

Feb 18, 2025

Upper · Passed

The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 12 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) DeCoite.

upper

Feb 14, 2025

Upper · Passed

The committee(s) on WAM will hold a public decision making on 02-18-25 10:01AM; Conference Room 211 & Videoconference.

upper

Feb 10, 2025

Upper · Passed

Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.

upper

Feb 10, 2025

Committee

Reported from EDT (Stand. Com. Rep. No. 123) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Jan 30, 2025

Upper · Passed

The committee(s) on EDT recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in EDT were as follows: 3 Aye(s): Senator(s) DeCoite, Wakai, Kim; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Fukunaga, Awa.

upper

Jan 27, 2025

Upper · Passed

The committee(s) on EDT has scheduled a public hearing on 01-30-25 1:00PM; Conference Room 229 & Videoconference.

upper

Jan 17, 2025

Committee

Referred to EDT, WAM.

upper

Jan 15, 2025

Introduced

Introduced and passed First Reading.

upper

Jan 10, 2025

Introduced

Pending Introduction.

upper

6 primary · 2 co-sponsors