State-by-state production incentives
Hawaii
| Hawaii | |
| Incentive Type | Refundable tax credit |
| Incentives Highlights | 15% refundable tax credit for qualifying spend in Oahu, 20% for neighboring islands. Production companies must file HI tax returns. |
| Eligible Projects | Films, television, pilots, series and commercials plus digital media |
| Minimum Spend | $200,000 |
| Production Cap or Annual Cap | $8 million per project cap. No annual cap. |
| Application/Reporting Requirements | Production must apply at least 5 days before first shoot day. |
| Loan-Out Reg Required? | No |
| CPA Audit? | No, but suggested. |
Hawaii Film Office
Georja Skinner, Administrator
info@hawaiifilmoffice.com
t: (808) 586-2570
f: (808) 586-2572
www.hawaiifilmoffice.com
OVERVIEW
Hawaii offers a 15-20% refundable tax credit based on a production company’s Hawaii expenditures while producing a qualified film, television, commercial, or digital media project. The credit equals 15% of qualified production costs incurred in Honolulu County where population exceeds 700,000 and 20% in the other Hawaiian counties and neighbor islands (Big Island, Kauai, Lanai, Maui, and Molokai). There is an $8 million credit cap per production. All fringes qualify for the incentive, although workers compensation and payroll processing fees must be paid to a local company to qualify. Act 215, which provided a non-refundable credit to investors of 80% of qualified spend over 5 years, expired on 12/31/10.
DETAILS
To use the 15-20% tax credit, a Production Registration Form must be submitted to the Hawaii Film Office at least one week prior to the first Hawaii shoot date. The production must make an effort to hire local crew, and must also make a financial or inkind contribution toward local educational or workforce development efforts. (The commission website provides a list of acceptable workforce development contributions). An end credit for the state of Hawaii must be included in the film. To be eligible for the credit, at least $200,000 in qualified production costs must be expended in Hawaii. Only costs incurred in Hawaii and subject to Hawaii’s general excise tax or income tax will be considered “qualified production costs.” Loan-out companies must register to do business in Hawaii. The loan-out will need to obtain a Hawaii General Excise Tax License and pay general excise tax on gross proceeds earned for monies paid to the loanout to qualify.
Note that this is a refundable credit; the production company must file a state tax return. The excess of tax credits over tax liability, if any, will be refunded by check within 6 to 8 weeks of the tax filing.
Hawaii boasts a burgeoning film infrastructure, including equipment rental and a film studio. Recent legislation to increase the film tax credit program did not pass.