SB 2580 Hawaii Senate · 2026 Regular Session

RELATING TO THE MOTION PICTURE, DIGITAL MEDIA, AND FILM PRODUCTION INCOME TAX CREDIT.

Summary

Amends the Motion Picture, Digital Media, and Film Production Income Tax Credit (tax credit) by, beginning for costs incurred after 12/31/2025, providing an additional credit to qualified productions with a workforce of at least eighty percent local hires; requiring each taxpayer claiming the tax credit to submit an independent third-party certification verifying certain information to the Department of Business, Economic Development, and Tourism; increasing the per-production cap amount to $20,000,000 and excluding qualified productions that incur at least $60,000,000 of qualified production costs from the per-production cap amount; changing the aggregate cap amount to $60,000,000; providing that, beginning for costs incurred after 12/31/2023, if the total amount of tax credits claimed in a year is less than the aggregate cap amount, the cap for the subsequent year shall be increased by the unclaimed amount; defining "streaming platform" and amending the definition of "qualified production" to include certain streaming productions; and extending the sunset date of the tax credit to 1/1/2038. Exempts from the general excise tax certain amounts received by a motion picture project employer from a client company that represent reimbursements for costs paid or incurred by the client company for reasonable employment-related costs of motion picture project workers or loan-out companies. (CD1)

Bill status signed all 5 stages cleared

Introduction

Jan 2026

Committee Review

May 2026

Senate Passage

May 2026

House Passage

May 2026

Signed into Law

Jul 2026

Introduced Jan 23, 2026 Signed Jul 7, 2026

Maddy AI version diff · 4 comparisons

What changed between versions

SB2580_SD1 → SB2580_SD2 · 7 edits

MODERATE

This bill increases the income tax credit rates for film and digital media productions, raising them to 27% for high-population counties and 32% for smaller counties. It introduces a mandatory third-party certification requirement for all taxpayers claiming the credit and adjusts the financial caps to exclude very large productions from the per-project limit. Additionally, the bill expands the definition of eligible projects to include specific streaming content and extends the program's expiration date to 2038.

Scope change

The bill expands the scope of eligible productions to include certain streaming platform series and specials that were previously excluded, while simultaneously tightening eligibility by requiring third-party verification for all claims.

FISCAL

Increased the tax credit rates from 22% to 27% for counties with over 700,000 residents and from 27% to 32% for counties with 700,000 or fewer residents.

Modified the per-production cap to exclude productions that incur at least $60,000,000 in qualified costs from the $17,000,000 limit.

Changed the aggregate annual cap for the program from a fixed $50,000,000 to an unspecified amount to be determined by the legislature.

REQUIREMENT

Added a requirement for every taxpayer claiming the credit to submit an independent third-party certification from a qualified CPA verifying their costs and claims.

SCOPE

Expanded the definition of 'qualified production' to include specific types of streaming platform series and specials, while maintaining exclusions for news, public affairs, and fundraising productions.

TIMELINE

Extended the repeal date of the tax credit program from January 1, 2033, to January 1, 2038.

DEFINITION

Added a new definition for 'streaming platform' to clarify which online providers qualify for the expanded production categories.

SB2580_CD1 → SB2580_HD1 · 8 edits

MODERATE

This bill significantly increases the tax credit rates for film and digital media productions in Hawaii, raising the rate to 27% for projects in populous counties and 32% for those in smaller counties. It also introduces a new $60 million spending threshold to exempt large-scale productions from a per-project credit cap, while removing the previous aggregate annual cap. The legislation expands the definition of eligible projects to include various streaming series and specials, extends the program's expiration date to January 1, 2038, and adds stricter reporting requirements including third-party certifications.

Scope change

The bill expands the scope of eligible productions to include specific types of streaming series, specials, and national talk shows, while excluding news, public affairs, and fundraising productions. It also changes the funding structure by removing the aggregate annual cap and creating an exemption for large productions.

FISCAL

Increased the tax credit rate from 22% to 27% for productions in counties with over 700,000 residents, and from 27% to 32% for productions in counties with 700,000 or fewer residents.

Removed the aggregate annual cap on total tax credits allowed under the program, replacing it with an unspecified amount to be determined later.

ELIGIBILITY

Exempted qualified productions that incur at least $60,000,000 in qualified production costs from the per-production credit cap of $17,000,000.

Expanded the definition of 'qualified production' to include single episodes of national magazine shows, national talk shows, and streaming platform specials.

Narrowed eligibility by explicitly excluding news, public affairs programs, non-national shows, televised sporting events, fundraising productions, and industrial/corporate productions.

TIMELINE

Extended the sunset date for the tax credit program from 2033 (or 2032) to January 1, 2038.

REQUIREMENT

Added a requirement for taxpayers to submit an independent third-party certification from a certified public accountant to verify production costs and local hiring data.

Updated the reporting requirements to include specific details on qualified production costs, prior tax credits claimed, and a breakdown of total versus local hires by category and county.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

May 6, 2026

Lower · Passed

Passed Final Reading as amended in CD 1 with none voting aye with reservations; Representative(s) Cochran, Lowen voting no (2) and Representative(s) Alcos excused (1).

lower

May 6, 2026

Upper · Passed

Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none. Noes, 0 (none). Excused, 0 (none).

upper

May 1, 2026

Lower · Passed

Reported from Conference Committee (Conf Com. Rep. No. 202-26) as amended in (CD 1).

lower

May 1, 2026

Introduced

48 Hrs. Notice (as amended CD 1) 05-06-26.

upper

May 1, 2026

Upper · Passed

Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 202-26).

upper

May 1, 2026

Lower · Passed

The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 3 Ayes: Representative(s) Ilagan, Hussey, Gedeon; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.

lower

May 1, 2026

Upper · Passed

The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 4 Aye(s): Senator(s) DeCoite, Wakai, Fukunaga, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

upper

May 1, 2026

Lower · Passed

Conference Committee Meeting will reconvene on Friday, 05-01-26 at 11:30AM in Conference Room 411.

lower

Apr 30, 2026

Lower · Passed

Conference Committee Meeting will reconvene on Friday 05-01-26 8:01AM in conference room 411.

lower

Apr 28, 2026

Upper · Passed

Conference committee meeting to reconvene on 04-30-26 9:00AM; Conference Room 411.

upper

Apr 27, 2026

Upper · Passed

Conference committee meeting to reconvene on 04-28-26 9:00AM; Conference Room 411.

upper

Apr 24, 2026

Upper · Passed

Conference committee meeting scheduled for 04-27-26 9:00AM; CR 411.

upper

Apr 10, 2026

Amended

Senate disagrees with House amendments.

upper

Apr 10, 2026

Introduced

Received from House (Hse. Com. No. 515).

upper

Apr 9, 2026

Lower · Passed

Passed Third Reading with none voting aye with reservations; none voting no (0) and Representative(s) Cochran excused (1). Transmitted to Senate.

lower

Apr 7, 2026

Lower · Passed

The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 16 Ayes: Representative(s) Todd, Takenouchi, Hartsfield, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Morikawa, Perruso, Templo, Yamashita, Alcos, Gedeon, Reyes Oda; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.

lower

Mar 25, 2026

Committee

Reported from ECD (Stand. Com. Rep. No. 1426-26) as amended in HD 1, recommending passage on Second Reading and referral to FIN.

lower

Mar 20, 2026

Lower · Passed

The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Ilagan, Hussey, Tam, Templo, Yamashita, Gedeon; Ayes with reservations: none; Noes: none; and Excused: none.

lower

Mar 10, 2026

Committee

Referred to ECD, FIN, referral sheet 15

lower

Mar 5, 2026

Introduced

Received from Senate (Sen. Com. No. 27) in amended form (SD 2).

lower

Mar 5, 2026

Upper · Passed

Report Adopted; Passed Third Reading, as amended (SD 2). Ayes, 24; Aye(s) with reservations: none. Noes, 0 (none). Excused, 1 (Senator(s) Ihara). Transmitted to House.

upper

Feb 19, 2026

Upper · Passed

The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 11 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Kidani, Richards.

upper

Feb 13, 2026

Upper · Passed

The committee(s) on WAM will hold a public decision making on 02-19-26 10:30AM; Conference Room 211 & Videoconference.

upper

Feb 11, 2026

Upper · Passed

Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.

upper

Feb 11, 2026

Committee

Reported from EDT (Stand. Com. Rep. No. 2149) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Feb 3, 2026

Upper · Passed

The committee(s) on EDT recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in EDT were as follows: 5 Aye(s): Senator(s) DeCoite, Wakai, Fukunaga, Kim, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

upper

Jan 30, 2026

Upper · Passed

The committee(s) on EDT has scheduled a public hearing on 02-03-26 1:00PM; Conference Room 229 & Videoconference.

upper

Jan 28, 2026

Committee

Referred to EDT, WAM.

upper

Jan 23, 2026

Introduced

Introduced.

upper

7 primary · 1 co-sponsor