Hawaii names 25 districts for federal tax breaks
The state secured these zones through an appeal to the Treasury Department, targeting housing, energy, and economic growth.
By Yasmin Nasser ·
Governor Josh Green announced on Thursday that 25 census tracts across Hawaii will receive federal tax incentives under the Opportunity Zones 2.0 program. The designation is intended to draw private capital into specific low-income areas that were not originally eligible for the federal initiative.
The state secured the designations by filing an appeal with the U.S. Department of the Treasury. The 25 selected tracts include 19 on Oʻahu, four on Hawaiʻi Island, and two on Maui. No tracts on Kauaʻi were eligible, and census-level data was unavailable for an appeal on that island.
Areas designated on Oʻahu range from Waikīkī to the North Shore. Specific locations include Koa Avenue, Tusitala Street, and Seaside Avenue in Waikīkī, as well as the Bingham Tract and the McCully-Mōʻiliʻili Public Library in Mōʻiliʻili. Other Oʻahu sites include Palama, Iwilei-Ānuenue, and the Kalaeloa area in West Oʻahu.
Hawaiʻi Island tracts include Pu‘ueo-Downtown, Villa Franca-Kaikoʻo, and University-Houselots in Hilo, along with Kealakehe in North Kona. Maui’s two designated areas are Kula Makai in Kiheī and the Lahaina Front Street census tract.
The program offers tax breaks to investors who commit long-term capital to these communities. It also provides additional benefits for eligible rural areas. State officials said the selection process prioritized three areas: housing, clean energy, and economic resilience.
James Kunane Tokioka, director of the Department of Business, Economic Development and Tourism, said the zones will funnel capital into projects spanning housing, healthcare, film, and agriculture. He noted that the program puts the state on the map for investors seeking to make a lasting difference.
Green stated that the designations aim to help local families afford housing and keep young residents employed in the state. He said the process involved months of engagement with county leaders, federal partners, and community stakeholders. More information is available at cdfifund.gov/opportunity-zones.
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