Governor announces several Opportunity Zone 2.0 designations, including on Big Island

Hawaiʻi Gov. Josh Green recently announced designation of 25 census tracts throughout the islands under the federal Opportunity Zones 2.0 program.

These include tracts on Oʻahu, Hawaiʻi Island and Maui, including Lahaina’s Front Street census tract. No census tracts on Kauaʻi were eligible for designation, nor was census-level data available to seek an appeal.

Opportunity Zones 2.0 designations on Hawaiʻi Island

The tracts were not originally eligible; however, the state secured these designations through an appeal to the U.S. Department of the Treasury.

The Opportunity Zones 2.0 program offers federal tax incentives to investors who put long-term capital into designated low-income communities, with additional benefits for eligible rural areas, unlocking hundreds of millions of dollars in private investment throughout the state in economically depressed neighborhoods.

“As a physician, I’ve spent my career in places where resources were scarce,” said Green. “What I learned is that when you invest early and in the right places, you prevent a lot of pain down the road. That’s as true for our communities as it is for our patients. These designations will catalyze investments to build a healthier and more affordable Hawaiʻi.”

The designations follow months of engagement with county leadership, federal partners, national experts, community stakeholders and the private sector, led in partnership through the Office of the Governor as well as Hawaiʻi Department of Business, Economic Development and Tourism and Hawaiʻi Office of Planning and Sustainable Development.

“Opportunity Zones 2.0 puts Hawaiʻi on the map for investors looking to make a lasting difference,” said Hawaiʻi Department of Business, Economic Development and Tourism Director James Kunane Tokioka. “From housing and health care to film and agriculture, these designations will funnel capital into projects that build lasting value.”

The state selected tracts based on three key priorities:

• Housing: Housing is the most pressing need in every county. Opportunity Zones 2.0 gives the state a new tool to attract private capital to build homes local families can afford.
• Clean energy: Hawaiʻi pays some of the highest energy costs in the nation; a burden on families and drag on the economy. The designations can bring private capital into energy projects that lower costs, create local jobs and advance the state’s clean energy goals.
• More resilient economy: The state aims to strengthen and diversify Hawaiʻi’s economy through investment in health care, tourism, advanced manufacturing, agriculture, broadband and film.

“Our kids shouldn’t have to leave Hawaiʻi to find a good job or an affordable place to live,” said Green. “Opportunity Zones 2.0 will help us build a stronger, more diverse economy so our people can stay, work and thrive right here at home.”

More information, including a full list and map of designations, can be found online.