Bill > HB2590

This bill aims to adjust taxation for the motion picture, digital media, and film production industries in Hawaii by applying the manufacturing general excise tax rate to these productions and removing a previous condition that tied "qualified production costs" to the highest general excise tax rate. It also introduces an exemption from the general excise tax for amounts a motion picture employer receives from a client that are directly disbursed for employee wages, salaries, payroll taxes, insurance, and benefits, as well as payments to "loan-out companies" (companies that provide services of individuals). Furthermore, the bill requires those making payments to loan-out companies and claiming a specific tax credit to withhold an amount exceeding the actual tax due for services performed in the state. These changes are set to take effect for taxable years beginning after December 31, 2026, with some provisions becoming effective on January 1, 2027, and the overall bill taking effect on July 1, 3050.