HB 1498 Hawaii House · 2025 Regular Session

RELATING TO TAXATION.

Summary

Increases the motion picture, digital media, and film production income tax credit for qualified productions that utilize qualified production facilities located within the State. Changes the cap amount and aggregate cap amount of the motion picture, digital media, and film production income tax credit to unspecified amounts. Imposes the manufacturing GET rate on motion picture, digital media, and film productions and repeals the provision in the definition of "qualified production costs" that applied the term to mean costs incurred that are subject to the highest GET rate. Exempts from the GET amounts received by a motion picture project employer from a client equal to amounts that are disbursed by the motion picture project employer for employee wages, salaries, payroll taxes, insurance premiums, and employment benefits and payments to loan-out companies. (HD1)

Issues: ✗ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 23, 2025 Last action Feb 14, 2025

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What changed between versions

HB1498 → HB1498_HD1 · 6 edits

MODERATE

This revised bill expands Hawaii's film and media tax credit program by increasing the credit rate for productions using qualified in-state facilities, clarifies that film production counts as manufacturing for tax purposes, and exempts payroll reimbursements from the general excise tax to reduce costs for production companies.

Scope change

The bill's scope expanded to include film production as a manufacturing activity under the general excise tax and to exempt payroll-related payments from taxation, while also adjusting credit caps to unspecified amounts.

ELIGIBILITY

Increased the tax credit rate from 22% to 27% for productions in smaller counties and added a 5% bonus credit for productions using qualified in-state production facilities.

DEFINITION

Added new definitions for 'qualified production facility' requiring sound stages, offices, catering, parking, facades, and mill space within a secure compound, and 'qualified production costs' to include wages, equipment, and facility rentals.

FISCAL

Removed specific dollar caps on the total tax credits per production and annual aggregate credits, replacing them with blank fields for unspecified amounts.

REQUIREMENT

Added requirements that qualified production facilities must be located on real property of at least ten acres, leased or purchased from the government, and constructed after December 31, 2024.

EXEMPTIONS

Added exemptions from the general excise tax for payroll reimbursements received by motion picture project employers and professional employer organizations, treating film production as a manufacturing activity.

TIMELINE

Set the effective date for the tax credit changes to taxable years beginning after December 31, 2024, and the general excise tax changes to January 1, 2026.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 14, 2025

Committee

Reported from ECD (Stand. Com. Rep. No. 653) as amended in HD 1, recommending passage on Second Reading and referral to FIN.

lower

Feb 12, 2025

Lower · Passed

The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 5 Ayes: Representative(s) Ilagan, Hussey, Holt, Tam, Templo; Ayes with reservations: none; Noes: none; and 2 Excused: Representative(s) Todd, Matsumoto.

lower

Jan 27, 2025

Committee

Referred to ECD, FIN, referral sheet 4

lower

Jan 23, 2025

Introduced

Introduced and Pass First Reading.

lower

1 primary · 0 co-sponsors