Bill > HB1498

This bill aims to enhance Hawaii's film, television, and digital media production industry by modernizing tax credits and general excise tax (GET) treatment. The bill increases the income tax credit for qualified film productions from 22% to 27% depending on the county's population, and adds an additional 5% credit for productions using qualified production facilities within the state. It defines a "qualified production facility" as a newly constructed facility located on at least 10 acres of government-leased or purchased land, with a minimum construction cost of $100 million. The bill also restores the manufacturing GET rate of 0.5% for production activities, which was previously increased to 4%, to help reduce production costs. Additionally, the bill creates a GET exemption for motion picture project employers for amounts disbursed for employee wages, salaries, payroll taxes, insurance premiums, and benefits, including payments to loan-out companies. These changes are intended to create a more favorable economic environment for film and media production, support local workforce development, and encourage private investment in production infrastructure in Hawaii, with most provisions taking effect in 2025 and 2026.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1498&year=2025