Film Credit Legislation

The film credit legislation is moving toward the Governor's desk. Two versions of the proposal - Senate Bill 541 and House Bill 1590 - are making their way through the Legislature. Both allow for an across-the-board 15 percent tax credit for Hawaii film and TV spending, up to $8 million in credits per production. Fifteen percent is considered the minimum tax credit needed to stay competitive with other states, according to state film commissioner Donne Dawson and others who have long advocated the increase.

The current tax credit, established in 1998, is 4 percent on all paid expenditures incurred in the state, as well as a 100 percent hotel-room tax credit. The credits are provided after qualified spending is done. The proposed bills would make the credit available to qualified commercials and digital media productions, and would reduce the qualifying amount to $200,000 spent in the state, down from $750,000 for TV productions and $2 million for films. The measures also allow for an additional 5 percent tax credit for production shoots on a Neighbor Island.

HB 1590 will be heard on April 7th in Senate Ways and Means Committee and if passed will go to the Senate Floor on April 12. The measure is supported by: The Department of Business, Economic Development, and Tourism, the Kauai Film Office, Big Island Film Office, Maui Film Office, Screen Actors Guild, Hawaii State AFL-CIO, IATSE Local 665, Hilton Hotels Hawaii, Ko Olina Resort, Kahala Mandarin Oriental, Home Baked Entertainment, Musicians Association of Hawaii, Hawaii Movie Studios, Atlantis Adventures, Oahu Visitors Bureau, Department of Taxation, Honolulu Film Office, Hawaii Teamsters and Allied Workers, Local 906 and concerned individuals.

HB 1590 Bill Language: http://www.capitol.hawaii.gov/site1/docs/getstatus.asp?qu=HB1590&showtext=on&press1=docs

SB 541, the companion bill to HB 1590, has been referred to Senate Finance Committee. After the measures pass their committees, the differences will be hashed out in a conference committee and a single bill will be sent to the Governor.

To see the bill language, go to: SB 541: http://www.capitol.hawaii.gov/site1/docs/getstatus.asp?qu=SB541&showtext=on&press1=docs

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