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PARTNERSHIP PROGRAM. “Helping Communities by Helping Businesses”. Overview. Enterprise Zone Partnership Program. Introduction-Program Overview Joining the EZ Program a. Who can join b. Benefits for joining Annual Certification a. Requirements for certification - PowerPoint PPT Presentation
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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
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3. ANNUAL CERTIFICATION1. 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 4 + 15% add to Year 3 12.5 Emps
Yr 5 + 15% add to Year 4 14 Emps
Yr 6 + 15% add to Year 5 15.5 Emps
Yr 7 + 15% 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 CERTIFICATION2. Increase your staff
b) ‘New’ Business Ex. Start with 10 Emps
Yr 1 10% increase from application* (10% x 10 = 1) 11 Emps
Yr 2 - 11 Employees
Yr 3 - 11 Employees
Yr 4 - 11 Employees
Yr 5 - 11 Employees
Yr 6 - 11 Employees
Yr 7 - 11 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).
2. 80% reduction of state income tax the first year, declines 10% each year for years 2-7.
3. 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
Year 1 2 3 4 5 6 7State Income Tax Credit 80% 70% 60% 50% 40% 30% 20%Unemp. Insurance Add'l Income Tax Credit 80% 70% 60% 50% 40% 30% 20%
In the event of a natural disaster, contact us ASAP! You may still receive benefits without certification, and can extend your 7 years.
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LINDA LINGLE GOVERNOR
THEODORE E. LIU DIRECTOR
MARK K. ANDERSON DEPU TY DIRECTOR
DEPARTMENT OF BUSINES S, ECONOMIC DEVELOPMENT & TOURISM Ente rprise Zone s No. 1 Ca pitol District Building, 250 S outh Hote l Stre e t, Room 503, Honolulu, Ha wa ii 96813 Te le phone : (808) 586 -2593 Ma iling Addre ss: P.O. Box 2359, Honolulu, Ha wa ii 96804 Fa x: (808) 586 -2589 We b site : http://www.ha wa ii.gov/dbe dt/busine ss/progra ms/e z
HAWAII ENTERPRISE ZONES (EZ) PROGRAM
BUSINESS CERTIFICATION
Thank you for completing and returning your Hawaii Enterprise Zon es Program "End -of-Year" report form. Your report has been reviewed and this is to notify you that your firm,
ALOHA COMPANY
-HAS- satisfied the EZ Program hiring and gross receipts requirements for the tax year ending December 31, 2006. This means your fi rm has qualified for the EZ program state tax benefits, as well as any EZ benefits offered by your county. You may now claim these benefits when you file your state income tax return and general excise tax reconciliation form. Copies of this certificat ion form should be attached to your general excise and state income tax forms when they are filed. Also please be sure to write in the amount of general excise tax your firm is exempt from on the general excise tax form. You will also need to include Sta te of Hawaii Tax Department Form 756 with your state income tax return if you are claiming the EZ income tax credits. You should consult your County EZ Coordinator for instructions on how to claim any county EZ benefits. _____________________________ _______ Date:_______________ Thomas J. Smyth Branch Chief
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 COORDINATORSSTATE
Michelle Muraoka Tel: (808) 586-2593KAUAI County George Costa Tel: (808) 241-4949OAHU County Dane Waltjen Tel: (808) 592-8630MAUI County Deidre Tegarden Tel: (808) 270-7710BIG ISLAND County Jane Horike Tel: (808) 961-8496
Website: http://www.hawaii.gov/dbedt/business/programs/ez