DBEDT E-newsletter – July 2026

Building the Infrastructure for Hawai‘i’s Economic Future

Photo credit: Pacific Business News

These rankings reinforce the importance of investing in the physical infrastructure and facilities that local businesses need to start, grow, manufacture and commercialize products in Hawaiʻi.

For many local entrepreneurs, one of the greatest barriers is the cost of developing specialized facilities and purchasing equipment. Shared-use facilities can lower those barriers by allowing multiple businesses to access commercial kitchens, manufacturing equipment, technical assistance and production space without each company having to make the same costly upfront investment. These public investments can lower the cost and risk of doing business while creating a more supportive environment for locally owned companies.

The state has begun making these investments. The Value-Added Product Development Center demonstrates how shared infrastructure can help entrepreneurs move from product development toward commercial production. Additional investments are being advanced through the Food and Product Innovation Network, or FPIN, to establish a coordinated statewide network of facilities supporting research, product development, manufacturing, commercialization, storage and distribution.

Similar infrastructure is needed for advanced manufacturing and small-scale consumer-product manufacturing. As highlighted in a recent KHON2 report, many Hawaiʻi companies currently send their designs overseas because the equipment and production capacity they need are not available locally.

FAM Hawaiʻi owner Zhorein Galicinao described what access to local manufacturing could mean for Hawaiʻi businesses: “If we had that, that’d be amazing … everybody would be going with that route instead of having to go through foreign countries to order.”

Creating that opportunity requires more than constructing a building. In many cases, the state cannot move directly into planning and developing a facility without first controlling its most fundamental underlying asset: land. Land acquisition is therefore not separate from economic-development infrastructure – it is the first step that allows the state to conduct planning and environmental review, establish partnerships, leverage federal and private investment and ultimately construct facilities that serve multiple businesses and industries.

During the coming legislative session, DBEDT intends to build upon the state’s initial investments by seeking funding for:

• The second phase of the Food and Product Innovation Network;
• The remaining construction funding for the Entrepreneur Product Manufacturing Facility;
• Land acquisition for a future advanced manufacturing facility; and
• Land acquisition for a future micro-manufacturing facility.

Hawaiʻi cannot eliminate every cost associated with operating in an island economy. However, the state can make strategic investments that reduce the cost borne by each individual business. By securing land and developing shared facilities, we can address the infrastructure constraints identified by CNBC while improving Hawaiʻi’s cost of doing business, business friendliness, workforce capacity and technology and innovation ecosystem.

That is how Hawaiʻi begins moving beyond its ranking – by building the foundation businesses need to succeed here.

Gov. Green Signs Legislation to Support Economic Development, Strengthen Community and Enhance Environmental Protections

Photo courtesy Office of the Governor

SB 2580: RELATING TO THE MOTION PICTURE, DIGITAL MEDIA, AND FILM PRODUCTION INCOME TAX CREDIT
SB 2580 (Act 185) updates Hawaiʻi’s film tax incentive program by raising the percentage caps by adding a 5% bonus for productions on O‘ahu and neighbor islands with at least 80% local hires, expanding eligibility to include streaming projects and extending the sunset to 2038. It increases the per‑production cap to $20 million, exempts from the cap those projects spending $60 million or more and sets a $60 million annual aggregate cap with carryover provisions, strengthening Hawaiʻi’s competitiveness to build a thriving film and television production industry in the state.
                                                                                                                               
Economic Development:

SB 2907: RELATING TO MARINE AFFAIRS
Governor Green signed SB 2907 (Act 186), creating a unified framework to strengthen Hawaiʻi’s blue economy by centralizing marine affairs oversight and positioning the state as a hub for ocean innovation. The act defines the blue economy; designates Hawaiʻi as an ocean cluster and establishes the Office of Marine Affairs, a governing board within the Hawai‘i Technology Development Corporation; and creates a coordinator role. By consolidating expertise, Hawaiʻi can better support innovation, partnerships and emerging ocean‑related opportunities.
 
Relating to Environmental Protections:
 
HB 1618: RELATING TO CESSPOOL CONVERSIONS
Outdated cesspools threaten Hawaiʻi’s water quality and public health, prompting a 2017 mandate for upgrades by 2050. To support homeowners, HB 1618 (Act 204) creates a Cesspool Conversion Revolving Loan Fund, administered by the Hawai‘i Green Infrastructure Authority and Green Fee funded, offering low‑interest or forgivable loans.
 
Relating to Housing and Community Development:
 
HB 1920: RELATING TO THE LOW-INCOME HOUSING TAX CREDIT
HB 1920 (Act 205) extends Hawaiʻi’s Low-Income Housing Tax Credit program to 2032, preserving a key tool for attracting private investment in affordable housing. The measure increases flexibility by allowing partnerships or LLCs receiving credits after July 1, 2026, to allocate, transfer, sell or assign them to any taxpayer. It also extends Act 129 (SLH 2016) to December 31, 2032, supporting a stronger, more adaptable pipeline of affordable rental housing projects statewide.
 
SB 2001: RELATING TO THE BANYAN DRIVE COMMUNITY DEVELOPMENT DISTRICT
SB 2001 (Act 206) creates the Banyan Drive Community Development District under the Hawai‘i Community Development Authority (HCDA) and establishes a special fund to support its revitalization. The act updates HCDA’s structure to include district representatives, the Banyan Drive Redevelopment Agency chair and a Waiākea Ahupuaʻa lineal descendant to ensure community involvement. Focused on transforming the historic area into a vibrant cultural, recreational and educational destination, the measure provides the framework needed to restore and reimagine Banyan Drive.

Welcoming the Hawaiʻi State Foundation on Culture and the Arts to DBEDT

Photo from a Super Saturday family art event courtesy SFCA

SBRRB Announces New Officers and Board Member

Hawai‘i Tourism Authority Awards $1 Million for 2026 Signature Events