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Bill

SB 125

RELATING TO STATE ENTERPRISE ZONES.

2026 Regular Session Introduced by Henry Aquino and 7 co-sponsors

Hawaii's stalled enterprise zone bill would revise tax incentives for businesses in designated development areas, but Senate-House disagreement delayed its resolution to 2026.

Carried over to 2026 Regular Session.
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Bill Summary · SB 125

Legislative bill overview

SB 125 concerns Hawaii's state enterprise zones—designated geographic areas with special tax incentives and regulatory benefits designed to attract business investment and economic development. The bill was introduced with bipartisan sponsorship and progressed through the legislative process but encountered disagreement between the Senate and House over amendments before being carried over to the 2026 session.

Why is this important

Enterprise zones are a key economic development tool that states use to stimulate job creation and business activity in targeted areas, often economically distressed regions. The outcome of this bill will affect which businesses qualify for tax breaks in Hawaii, how long those incentives last, and ultimately where private investment flows within the state.

Potential points of contention

  • Scope and eligibility criteria – Disagreement likely exists over which geographic areas qualify for zone status and what business types receive incentives
  • Tax incentive duration and cost – Disputes may center on how long tax breaks should last and the fiscal impact to Hawaii's state budget
  • Accountability measures – Potential conflict over whether zones require job creation targets, wage standards, or other performance metrics to justify public subsidies

Compiled from official sources — confirm details with the bill’s official record.

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