Bill Text: HI SB1311 | 2018 | Regular Session | Introduced

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Bill Title: Relating To The Kapolei Jobs Initiative.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-01-17 - Re-Referred to ETT/LBR, WAM. [SB1311 Detail]

Download: Hawaii-2018-SB1311-Introduced.html

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THE SENATE	S.B. NO.	1311
TWENTY-NINTH LEGISLATURE, 2017
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to the kapolei jobs initiative.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The legislature finds that job growth in the Kapolei region on the island of Oahu is a matter of community and state concern, as households continue to outgrow the number of employment opportunities in the region.

     The legislature further finds that the state enterprise zone program is restrictive and participation has been relatively low, particularly in the leeward enterprise zone.

     The purpose of this Act is to establish a Kapolei jobs initiative to increase the number of jobs in Kapolei by creating incentives for businesses to establish themselves or open a new location in the Kapolei region.

     SECTION 2.  Chapter 209E, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§209E-     Kapolei jobs initiative; establishment; rules.  (a)  There is established within the department of business, economic development, and tourism, the Kapolei jobs initiative program.  Any qualified business is eligible to participate in the Kapolei jobs initiative and is eligible for the incentives available pursuant to this chapter with the exception of section 209E-11.

     (b)  The department of business, economic development, and tourism may adopt rules, pursuant to chapter 91, to effectuate the purposes of this section.

     (c)  As used in this section:

     "Designated geographic area" means the regions represented by the following zip codes:  96706, 96707, and 96709.

     "Qualified business" means the same as a qualified business in section 209E-2; provided that:

     (1)  A minimum of ten full-time employees work at the establishment located in the designated geographic area; or if the business is already established in the designated geographic area, the business expands or constructs a new establishment in the same area that results in a net gain of ten full-time employees;

     (2)  The business provides gross annual salaries of $25,000 or more to at least half of its employees at the establishment located in the designated geographic area; and

     (3)  The business earns at least half of its gross annual revenue from its establishment located in the designated geographic area.

     "Qualified business" excludes retail, except when greater than fifty per cent of the business' sales are to Hawaii general excise tax licensees."

     SECTION 3.  (a)  The department of business, economic development, and tourism shall collect from every qualified business claiming a tax credit under section 209E-   , Hawaii Revised Statutes, the following information:

     (1)  Total expenditures incurred, if any, in the Kapolei jobs initiative and amount of expenditures applicable to the tax credit expended in the previous taxable year;

     (2)  The amount of tax credits claimed pursuant to this section, if any, and the amount of total taxes paid, if any, in the previous taxable year;

     (3)  The amount of unemployment insurance accrued and the amount of unemployment insurance paid by the qualified business in the previous taxable year;

     (4)  Hawaii employment and wage data, including the numbers of full-time and part-time employees retained, wages for each position, new jobs, temporary positions, external services procured by the qualified business, and payroll taxes; and

     (5)  Any other factors the department of business, economic development, and tourism deems relevant.

The purpose of collecting the above information is to study the effectiveness of the tax credit.  The department of business, economic development, and tourism may request additional information necessary to measure the effectiveness of the tax credit.

     (b)  The department of business, economic development, and tourism shall:

     (1)  Maintain records of the names of the qualified businesses claiming the tax credit;

     (2)  Obtain and total the aggregate amounts of expenditures from all qualified businesses per taxable year;

     (3)  Provide a letter to the director of taxation specifying the amount of the tax credit per qualified business for each taxable year that a tax credit is claimed and the cumulative amount of the tax credit for all years claimed; and

     (4)  Submit a report to the legislature no later than twenty days prior to the convening of each regular session detailing the non-aggregated expenditures of qualified businesses that form the basis of the tax credit, itemized by qualified business, in a redacted format to preserve the confidentiality of the qualified businesses claiming the credit.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2017; provided that this Act shall be repealed on December 31, 2024.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Department of Business, Economic Development, and Tourism; Tax Credit; Kapolei Jobs Initiative

 

Description:

Establishes a Kapolei jobs initiative to increase the number of jobs in Kapolei by creating incentives for businesses to establish themselves or open a new location in the Kapolei region.  Requires DBEDT to collect information to study the effectiveness of the tax credit.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.