Bill > HB1498

This bill aims to enhance Hawaii's film and digital media production industry by modifying tax credits and general excise tax (GET) treatment for film productions. The bill increases the income tax credit for qualified film productions, offering 22% for productions in counties with over 700,000 people and 27% for smaller counties, with an additional 5% credit for productions using qualified production facilities within the state. It introduces a new definition for "qualified production facilities" that requires the facility to be constructed after 2024, located on at least 10 acres of leased or purchased government land, and cost a minimum of $100 million to design and construct. The bill also restores the manufacturing GET rate of 0.5% for production activities, which was previously increased to 4%, and creates a GET exemption for motion picture project employers for amounts disbursed for employee wages, benefits, and payments to loan-out companies. These changes are intended to create a more favorable economic climate for film production, support local workforce development, and encourage private investment in film production infrastructure in Hawaii, with provisions applying to taxable years beginning after December 31, 2024.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1498&year=2026