Bill > HB2590

This bill modifies Hawaii's tax laws to benefit the motion picture, digital media, and film production industries, primarily by adjusting tax rates and introducing new exemptions and withholding requirements. Specifically, it imposes the manufacturing general excise tax rate, which is a lower rate, on these productions, and removes a previous condition that tied "qualified production costs" to the highest general excise tax rate. The bill also exempts certain amounts received by a "motion picture project employer" (a company hiring for film production) from a client company, provided these amounts are directly disbursed for employee wages, payroll taxes, insurance, benefits, and payments to "loan-out companies" (companies that provide services of individuals). Furthermore, it requires those making payments to loan-out companies and claiming the Motion Picture, Digital Media, and Film Production Tax Credit to withhold an amount exceeding the actual tax due on those payments. These changes are set to take effect for taxable years beginning after December 31, 2026, with the overall bill becoming effective on July 1, 3000.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=2590&year=2026