Incentives & Tax Credits

IMPORTANT NOTICE TO ALL TAX CREDIT APPLICANTS AND CLAIMANTS:

Please read through the new Temporary Hawaii Administrative Rules on this page under Overview and Instructions.


 

ALL TAX CREDIT APPLICANTS SHOULD CONTACT THE APPLICABLE STATE AND COUNTY FILM OFFICES FOR ANY NECESSARY PERMITS FOR FILMING IN HAWAII WITHIN STATE OR COUNTY JURISDICTIONS.

UPDATE:

Governor David Ige recently signed into law Act 143 which does not take effect util December 31, 2018 but which extends the sunset date for the tax credit program to January 1, 2026.

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).

Requirements to access the credit:
  • 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.

The refundable production tax credit also includes the following:
• Per production credit cap of $15 million;
• Qualifies productions with Internet-only distribution;
• Allows State and County location and facilities fees as a qualified expenditure;

Qualified Spend: The qualified spend includes all in-state costs incurred by a qualified production that are subject to the general excise tax or income tax. The costs incurred for the use of state and county facilities and locations that are not subject to general excise tax will qualify for the incentive. Government imposed fines, penalties, or interest incurred within Hawaii by the qualified production will not qualify.

 

Overview & Instructions:

Required Forms:

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.


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:

Phone: 808-587-1530

or

tax.rules.office@hawaii.gov