HB2201 • 2026

RELATING TO STATE ENTERPRISE ZONES.

Healthcare Taxes

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: GARCIA, ALCOS, GEDEON, ILAGAN, IWAMOTO, KAHALOA, KILA, MATSUMOTO, MURAOKA, REYES ODA, SHIMIZU, TEMPLO
Last action: 2026-03-10
Official status: Referred to EDT/HHS, WAM.
Effective date: Not listed

Plain English Breakdown

The official source material does not provide details on specific benefits for recycling facilities and film studios within enterprise zones.

Rules for State Enterprise Zones

This bill increases the number of enterprise zones a county can nominate and adds recycling facilities and film production to eligible business activities.

What This Bill Does

Increases the number of enterprise zones that may be nominated by each county from six to eight.
Adds recycling facilities as an eligible business activity in enterprise zones.
Includes film production or operating a film studio as new eligible business activities.

Who It Names or Affects

Counties that nominate enterprise zones
Businesses interested in setting up recycling facilities, film studios, or other eligible activities within enterprise zones

Terms To Know

Enterprise Zone: A specific area designated by the government to encourage economic development through tax incentives and other benefits.
Eligible Business Activity: Types of businesses or activities that qualify for special treatment in enterprise zones, such as tax breaks or grants.

Limits and Unknowns

The bill does not specify how the increase in eligible business types will affect existing enterprises.
It is unclear what specific benefits recycling facilities and film studios will receive within these zones.
The bill's effective date of July 1, 3000, suggests it may be a placeholder or test case for future legislation.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: This amendment increases the number of enterprise zones that each county can nominate, adds recycling facilities and film production to eligible business activities, and excludes medical cannabis dispensaries from being considered as an eligible business activity.

Increases the number of enterprise zones a county can designate from six to eight.
Adds recycling facilities and film production or operation of a film studio to the list of eligible business activities.
Excludes medical cannabis dispensary activities from being considered as an eligible business activity.

The amendment text specifies that it will take effect on July 1, 3000, which is likely a placeholder date and not the actual intended effective date.

Bill History

2026-03-10 S
Referred to EDT/HHS, WAM.
2026-03-10 S
Passed First Reading.
2026-03-10 S
Received from House (Hse. Com. No. 194).
2026-03-06 H
Passed Third Reading with none voting aye with reservations; none voting no (0) and Representative(s) Perruso, Sayama excused (2). Transmitted to Senate.
2026-03-06 H
Reported from FIN (Stand. Com. Rep. No. 966-26), recommending passage on Third Reading.
2026-03-04 H
The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 16 Ayes: Representative(s) Todd, Takenouchi, Hartsfield, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Morikawa, Perruso, Templo, Yamashita, Alcos, Gedeon, Reyes Oda; Ayes with reservations: none; Noes: none; and Excused: none.
2026-03-02 H
Bill scheduled to be heard by FIN on Wednesday, 03-04-26 10:00AM in House conference room 308 VIA VIDEOCONFERENCE.
2026-02-20 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Quinlan excused (1).
2026-02-20 H
Reported from ECD (Stand. Com. Rep. No. 616-26) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
2026-02-18 H
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, Yamashita, Gedeon; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.
2026-02-12 H
Bill scheduled to be heard by ECD on Wednesday, 02-18-26 9:30AM in House conference room 423 VIA VIDEOCONFERENCE.
2026-01-30 H
Referred to ECD, FIN, referral sheet 5
2026-01-28 H
Introduced and Pass First Reading.
2026-01-26 H
Pending introduction.

Official Summary Text

RELATING TO STATE ENTERPRISE ZONES.
State Enterprise Zones; Eligible Business Activity; Recycling Facilities; Film Production; Film Studios
Increases the number of enterprise zones that may be nominated by each county. Amends the definition of "eligible business activity" to include recycling facilities and film production or operation of a Film Studio. Effective 7/1/3000. (HD1)

Current Bill Text

Read the full stored bill text

HB2201

HOUSE OF REPRESENTATIVES

H.B. NO.

2201

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to state enterprise zones
.

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

����
SECTION
1
.
�
Section 209E-2,
Hawaii Revised Statutes, is amended by amending the definition of
"eligible business activity" to read as follows:

����
""Eligible business
activity" means the:

����
(1)
�
Manufacture of
tangible personal property, the wholesale sale of tangible personal property as
described in section 237-4, or a service business as defined in this section;

����
(2)
�
Production of
agricultural products where the business is a producer as defined in section
237-5, or the processing of agricultural products, all or some of which were
grown within an enterprise zone;

����
(3)
�
Research,
development, sale, or production of all types of genetically-engineered
medical, agricultural, or maritime biotechnology products; [
or
]

����
(4)
�
Production of
electric power from wind energy for sale primarily to a public utility company
for resale to the public;

����
(5)
�
Operation of a
recycling facility, as defined in section 342G-101; or

����
(6)
�
Film production
or operation of a film studio;

provided that medical cannabis dispensary activities
pursuant to chapter 329D shall not be considered an eligible business activity
for the purposes of this chapter."

����
SECTION
2
.
�
Section 209E-4,
Hawaii Revised Statutes, is amended by amending subsection (b) to read as
follows:

����
"(b)
�
The governor, upon the recommendation of the
director, shall approve the designation of up to [
six
]
eight

areas in each county as enterprise zones for a period of twenty years.
�
Any such area shall be located in one United
States census tract or two or more contiguous United States census tracts in
accordance with the most recent decennial United States Census.
�
The census tract or tracts within which each
enterprise zone is located also shall meet at least one of the following
criteria:

����
(1)
�
Twenty-five per
cent or more of the population have incomes below eighty per cent of the median
family income of the county; or

����
(2)
�
The unemployment
rate is 1.5 times the state average."

����
SECTION 3.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION 4.
�
This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

State
Enterprise Zones

Description:

Increases
the number of enterprise zones that may be nominated by each county.
�
Amends the definition of "eligible
business activity" to include recycling facilities and film production.

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