Incentives and Tax Credits

Refundable 22-27% Tax Credits for Film Productions

Hawai‘i offers a competitive film tax credit to support productions that showcase our islands while creating local jobs and investment. Our Motion Picture, Digital Media & Film Production Income Tax Credit provides:

  • 22% on O‘ahu
  • 27% on Neighbor Islands (Maui, Kaua‘i, Hawai‘i Island, Moloka‘i, Lānaʻi)

Why Film in Hawaʻi?

  • Up to $17 million per project in tax credits
  • $50 million annual cap available statewide
  • Qualified production costs covered (crew wages, rentals, travel, post-production)
  • Streamlined online application process

Questions? Contact us:

[email protected]
808-492-6233

 

 

Refundable Production Tax Credit Overview

Hawai‘i’s Refundable Production Tax Credit includes:

  • $50 million annual spending cap (If the cap is reached, productions may claim from the subsequent year.)
  • $17 million per production credit cap (Applies to productions registered in 2023 and beyond.)
  • Qualifies certain productions with Internet-only distribution
  • State & County facility/location fees qualify as eligible expenses
  • Qualified Spend: Includes all in-state costs subject to Hawai‘i General Excise Tax (GET) or Income Tax

Minimum Spending Requirements:

  • Productions must meet the minimum in-state spending requirement of $100,000 in the applying year.
  • Submissions for a Split-Year must spend at least $100,000 in Year 1.

Costs that qualify even if not subject to GET:

  • Fees for state and county facilities and locations
  • Out-of-State Costs:
    • Use Tax must be paid (at the rate of 4% plus any applicable county surcharge) as required under HRS Chapter 238 for the products or services acquired outside of Hawaii for use or consumption in Hawaii.
    • Gross income or gross proceeds from the sale of tangible personal property delivered in the State, services used or consumed in the State, or intangible property used in the State is less than $100,000.
    • Sold tangible personal property delivered in the State, services used or consumed in the State, or intangible property used in the State in less than two hundred separate transactions.

Qualified Costs

Qualified production costs covered:

  • Preproduction costs (location scouting, related services)
  • Set construction, wardrobe, props, food, office supplies, transportation, equipment
  • Wages for cast, crew, and musicians
  • Photography, sound, lighting, editing, visual effects, music, post-production costs
  • Rental fees for local, state, and county facilities exempt from tax
  • Vehicle and lodging rentals for cast and crew
  • Airfare to/from Hawaii and interisland flights
  • Insurance and bonding
  • Shipping equipment and supplies to/from Hawaii
  • Other direct production costs as specified by the department

Costs that qualify even if not subject to GET:

  • Fees for state and county facilities and locations
  • Out-of-state costs:
    • Use Tax must be paid (at the rate of 4% plus any applicable county surcharge) required under HRS Chapter 238 for the products or services acquired outside of Hawaii for use or consumption in Hawaii.
    • Gross income or gross proceeds from the sale of tangible personal property delivered in the State, services used or consumed in the State, or intangible property used in the State is less than $100,000.
    • Sold tangible personal property delivered in the State, services used or consumed in the State, or intangible property used in the State in less than two hundred separate transactions

Non-Qualifying Expenses:

  • Insurance premiums from out-of-state insurance companies
  • Fees for CPA firms that are not registered to do business in Hawai‘i
  • Government-imposed fines, penalties, or interest
  • All banking fees and USPS postage expenditures

View the full tax credit details:

Application Process

IMPORTANT NOTICE: NEW Online Application Portal Now Available!

  • All filers must submit the Pre-Production Registration Form (PRF) and Hawai‘i Production Report (HPR) with backup documentation via the online application portal.
  • Review the Online Portal Manual for detailed instructions.

Step 1: Register & Submit Pre-Production Registration Form (PRF)

  • Submit a Pre-Registration Form (PRF) at least 7 business days before your first Hawai‘i shoot date
  • Filer must complete and upload the Start of Principal Photography Letter (SOPP) prior to Day 1.
    • If production cost exceeds $1M, (Project Name + Filing Entity) acknowledges and will allow DBEDT/ Creative Industries Division to notify Hawaiʻi based entertainment industry labor unions of production start date: International Alliance of Theatrical Stage Employees (IATSE Local 665), Hawaii Teamsters and Allied Workers (Teamsters Local 996), Screen Actors Guild (SAG-AFTRA) and (if applicable) International Brotherhood of Electrical Workers (IBEW) of the start date of project.
  • Provide estimated production costs, tax credit claims, and workforce development plans
  • Filer will receive a Pre-Qualification Letter (PQL) from the Hawaiʻi Film Office/Creative Industries Division by email

Step 2: During Production

  • Track all qualified expenditures
  • Ensure compliance with on-screen credit requirements

Step 3: Submit Hawai‘i Production Report (HPR) & Expenditure Report

  • Must be submitted within 90 days of the subsequent year of PRF submission
  • Required documents:
    • Actual Production Costs and Tax
    • All Costs Subject to HI GET
    • Credit Claimed
    • Expenditures by Category
    • Payroll by Category (ATL/BTL)Hiring
    • Report – Hawaiʻi Residents vs. Non-Residents
    • Vendor List
    • Loan Out List
    • Payroll Log
    • Supporting Documentation
    • End Credit Verification

Workforce Development 0.1% Contribution Options:

  • Financial contribution to a Hawaiʻi university or public/charter school
  • In-kind donation to a Hawaiʻi university or public/charter school
  • Educational Program with a local labor union chapter
  • Workshop/Seminar with the Hawaiʻi Film Office

0.2% Tax Credit Claim to the Hawaiʻi Film and Creative Industries Development Special Fund

*Review the Expenditure Report Guidance for more information. Please be advised that Hawai`i Film Office (HFO) may request supporting documents from the Expenditure Report.

Step 4: Receive Your Refundable Tax Credit

  • Send a secure screener link (password protected) of your project to [email protected] (for internal purposes only)
  • Upon certification, apply for the credit on your Hawai‘i state tax return
Start an Application

Qualifications & Compliance Requirements

To access the 22-27% Motion Picture, Digital Media & Film Production Income Tax Credit, productions must meet the following qualification criteria and ongoing compliance requirements:

Qualification Criteria – Pre Production

To be eligible for the tax credit, a production must

  • Register to do business in Hawai‘i and obtain a General Excise Tax (GET) License
  • Register with the Hawai‘i Film Office/DBEDT at least 7 days before the first day of principal photography (SOPP)
  • Spend a minimum of $100,000 on qualified production costs in Hawai‘i
  • Make reasonable efforts to hire local talent and crew (See Resources)

Compliance Requirements – During & After Production

To maintain eligibility and claim the tax credit, productions must:

  • Deduct and withhold GET from all payments made to loan-out companies for services performed in Hawai‘i
  • Provide proof that reasonable efforts were made to source local products and services before acquiring them elsewhere
  • Submit a 0.2% fee of the total tax credit claimed via the online portal
  • Support workforce development by contributing 0.1% of Hawai‘i spend (or a minimum of $1,000) in financial or in-kind donations to local education and industry programs
  • Upload all required compliance documentation to the Hawai‘i Production Report (HPR) portal

Workforce Development Proof-of-Donation Submission

  • Filers must download and print the Workforce Development Contribution Report
  • Submit the signed document and a copy of:
    • Financial contribution to Hawaiʻi public or charter school (Donation check)
    • In-kind donation to Hawaiʻi public or charter school (Supporting documentation of donated items)
    • Educational program with Hawaiʻi public or charter school
      • Supporting documentation verifying internship hours worked and corresponding payroll records.
      • Supporting documentation showing value of educational program/class offered.
    • Educational program with local labor union chapter
      • Supporting documentation showing value of educational program/class offered
  • Productions must follow Appendix B (Updated 3-14-23) for detailed guidance on fulfilling workforce development obligations.

0.2% Tax Credit Claim to the Hawaiʻi Film and Creative Industries Development Special Fund

End Credit/Shared Card Requirements

Important Tax Updates & Advisories

Required Forms & Deadlines

Pre-Production Registration (Due Before Filming Starts)

  • Pre-Production Registration Form (PRF) – Due at least 7 days prior to the first shoot date in Hawai‘i.
  • Pre-Production Registration Form (PRF) – Split Year – For productions spanning multiple calendar years.
  • Start of Principal Photography Letter (SOPP) prior to Day 1

Final Reporting (HPR) and Workforce Development Contribution (Due After Filming Ends)

  • Hawai‘i Production Report (HPR) – Due 90 days prior to the next calendar year.
  • HPR submissions start on January 1 of each year.

Required Attachments for Hawai‘i Production Report (HPR)

Detailed final Hawai’i Expenditure Ledger showing all production expenditures incurred in the State of Hawaii.

  • Detailed Expenditure Report (Required Template)
  • Signed Use Tax Sworn Statement demonstrating that reasonable efforts were made to use comparable products or services within Hawaii before items were imported into the State.
  • Crew List with names and contact information
  • Vendor List Form with total costs associated with each vendor or individual and active General Excise Tax (GET) license numbers for ALL vendors.
  • Loan Out List with total costs associated with each loan out company and active GET license numbers for ALL loan out companies. For productions registered on or after Jan. 1, 2023, proof of GET withholding payments on behalf of loan-outs is also required.
  • Payroll log (any production employee who is not on payroll and without HI income taxes withheld, must be registered to do business in the state, and have a GET license number).
  • Petty cash log (showing complete breakdown of petty cash payments and petty cash vendors).
  • Verification of Education/Workforce Development Contribution (contribution must be earmarked for digital media or performing arts program in Hawaii public or charter school).
  • End Credit Verification (screen grab) if available. And the Final Product and/or EPK.
  • Use Tax List (if applicable) with total costs associated with each vendor and documentation that use tax was paid (via Forms G-45/49).
  • Verification Review of your HPR and claim for this tax credit conducted by a Qualified CPA using agreed upon procedures prescribed by DBEDT.  (This does not apply to productions registered on or after Jan 1, 2023.)
  • Verification Review of your Workforce Development donation
    • Submit the signed document along with a copy of your donation check to [email protected] and upload to your HPR Portal submission.
    • Provide evidence of financial or in-kind contributions or educational or workforce development efforts, such as internships, toward the furtherance of the local film, television, and digital media industries that is valued at 0.1% of the productions Hawaiʻi spend or $1,000, whichever is greater. Evidence to be uploaded to online HPR.

Downloadable Forms and Templates

Required .xls forms must be submitted as .xls files and not as PDFs.

Hawaiʻi Department of Taxation Advisories & Exemptions

Royalties derived from performing arts products are excluded from Hawai‘i state income tax and not subject to state taxation.

Learn more: