Bill > HB1939

This bill amends the existing film tax credit program to incentivize productions that hire local workers and invest in the state's film industry. It introduces additional tax credits for productions that progressively increase their local workforce percentage over five consecutive years, starting at 80% and rising to 85%. Furthermore, productions can receive an extra credit for having a significant "above-the-line workforce" (key personnel like actors and directors) that are local hires, investing in local film infrastructure, featuring indigenous content, or conducting post-production in the state, with the highest value option being applied. To ensure accuracy, all film productions claiming the credit will now require independent third-party certification of their qualified production costs, which are expenses incurred within the state that are subject to taxation. The Department of Business, Economic Development, and Tourism (DBEDT) is authorized to waive the annual credit cap of $17 million for one qualified production per fiscal year, with specific reporting requirements for these waivers. Finally, the Hawaii Film Office will be responsible for submitting an annual report to the Legislature detailing the impact and benefits of the tax credit program. This bill is set to take effect in the distant future, July 1, 3050, and will be repealed on January 1, 2033.