Incentives & Tax Credits
IMPORTANT NOTICE TO ALL TAX CREDIT APPLICANTS AND CLAIMANTS:
Effective immediately, all forms and attachments required to apply for and claim the tax credit program, including Production Registration Forms and Hawaii Production Reports as well as expenditure reports, vendor and crew lists, must be sent to the Hawaii Film Office via US Postal Service, express shipping company, or hand-delivered.
DO NOT EMAIL any of these documents until further notice. If you have any questions, please contact the Hawaii Film Office at 808-586-2570. Mahalo!
As of July 1, 2013, Hawaii has a new, expanded production tax credit, now known as Act 88/89:
20-25% MOTION PICTURE, DIGITAL MEDIA, & FILM PRODUCTION INCOME TAX CREDIT
This is a 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 20% of qualified production costs incurred on Oahu, and 25% on the neighbor islands (Big Island, Kauai, Lanai, Maui, Molokai).
- Register with the Hawaii Film Office/Department of Business, Economic Development & Tourism at least five working days PRIOR to the first Hawaii shoot date;
- Meet the minimum in-state spending requirement of at least $200,000;
- Make reasonable efforts to hire local talent and crew; and,
- Provide evidence of financial or in-kind contributions or educational or workforce development efforts toward the furtherance of the local film, television and digital media industries.
Act 88/89 also includes the following amendments:
• Increases the credit cap from $8M to $15 million per production ;
• Qualifies productions with Internet-only distribution;
• Allows State and County location and facilities fees as a qualified expenditure;
• Extends the credit’s sunset date to December 31, 2018.
Overview & Instructions:
- Overview & Instructions for the 20-25% Tax Credit (.pdf)
- FAQs About the 20-25% Tax Credit (.pdf)- Frequently asked questions about the credit, including what is eligible as a “qualified production cost”
- Tax Information Release No. 2006-02 (.pdf) – Additional guidelines and examples on what is eligible as a “qualified production cost”
- Tax Information Release No. 2009-05 (.pdf)- Regarding administrative rules relating to film related tax credits
- Tax Information Release No. 2010-04 (.pdf)- Most recent TIR regarding the interpretation of the term “qualified production” for purposes of administering the refundable Motion Picture, Digital Media, and Film Production Income Tax Credit
- Statute: NEW Act 88/89 Hawaii Revised Statutes §235-17
- PRODUCTION REGISTRATION FORM FOR 20-25% TAX CREDIT (fillable .pdf) – Due at least one week prior to first Hawaii shoot date.
- HAWAII PRODUCTION REPORT FOR 20-25% TAX CREDIT (fillable .pdf) – Due no later than 90 days following the end of each taxable year in which qualified production costs were expended.
- SPLIT YEAR PRODUCTION REGISTRATION FORM(fillable .pdf)
- HAWAII PRODUCTION REPORT FOR 15-20% TAX CREDIT (fillable .pdf)
Required Attachments for the Hawaii Production Report:
- Detailed final Hawaii Expenditure Report
- Vendor list with total costs associated with each vendor or individual
- Verification of Education/Workforce Development Contribution
- For projects with qualified spend of $1M or more, tax opinion for agreed upon procedures & reports verified by an independent tax practitioner.
- Crew list with names and contact info.
Budget/Expenditure Report Templates:
These templates provide an example of the level of detail required on the Hawaii expenditure reports you need to submit with your Hawaii Production Report. All cost items, other than petty cash, must be associated with a specific vendor or individual’s name and a General Excise Tax (GET) License number. Total costs paid to each vendor or individual must be included in required Vendor List form. Please use the Vendor List Template below. You may use your own budget/expenditure report formats as long as the detail provided is equivalent to the detail found in these templates.
Please note the multiple worksheets on different tabs in each document.
- VENDOR LIST TEMPLATE (.xlsx)
ROYALTIES TAX EXEMPTION
Royalties derived from performing arts products are excluded from a Hawaii taxpayer’s income and not subject to state income tax.
Overview & Instructions:
For further information, contact: