summary
Introduced
01/17/2025
01/17/2025
In Committee
04/04/2025
04/04/2025
Crossed Over
03/04/2025
03/04/2025
Passed
Dead
Introduced Session
2025 Regular Session
Bill Summary
Requires counties to waive permitting fees for certain film activity. Exempts entertainment payroll companies from the GET. Repeals an income tax exemption for persons engaged in the business of motion picture and television film production for taxable years beginning after 12/31/2023. Amends the Motion Picture, Digital Media, and Film Production Income Tax Credit by providing an additional credit to qualified productions with a workforce of at least eighty percent local hires; requiring productions to contact all local labor unions servicing Hawaii's film industry to qualify for the credit; requiring qualified production costs of a taxpayer that exceed $1,000,000 to be certified by a CPA, rather than via tax opinion; increasing the aggregate cap amount on credits allowed in any given year, ramped down by one-sixth over five years beginning on 1/1/2028; and including broadcast and streaming platform productions under the credit. Applies the GET rate for manufacturers to productions. Exempts from the GET amounts received by a motion picture project employer from a client equal to amounts that are disbursed by the motion picture project employer for employee wages, salaries, payroll taxes, insurance premiums, and employment benefits and payments to loan-out companies. Repeals certain tax exemptions and the Motion Picture, Digital Media, and Film Production Income Tax Credit on 1/1/2033. Appropriates funds. Effective 7/1/3000. (HD2)
AI Summary
This bill proposes several changes to Hawaii's film industry tax regulations and incentives. The legislation requires counties to waive permitting fees for qualified film productions and exempts entertainment payroll companies from the General Excise Tax (GET). It modifies the Motion Picture, Digital Media, and Film Production Income Tax Credit by providing an additional 5% credit for productions with at least 80% local hires, requiring productions to contact all local film industry labor unions, and mandating that production costs over $1 million be certified by a Certified Public Accountant (CPA). The bill also expands the tax credit to include broadcast and streaming platform productions, applies the manufacturer's GET rate to productions, and creates a GET exemption for motion picture project employers for employee-related disbursements. The bill gradually reduces the aggregate tax credit cap over five years beginning in 2028 and ultimately repeals the tax credit and related provisions on January 1, 2033. Additionally, the legislation removes the existing income tax exemption for motion picture and television film production businesses for tax years starting after December 31, 2023. The changes aim to support and regulate Hawaii's film industry while providing financial incentives for local production and hiring.
Committee Categories
Budget and Finance, Business and Industry, Justice
Sponsors (1)
Last Action
Carried over to 2026 Regular Session. (on 12/08/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
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