RELATING TO TAXATION.

Taxes

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: TAM, AMATO, EVSLIN, ILAGAN, KEOHOKAPU-LEE LOY, KILA, LEE, M., MARTEN, PERRUSO, TEMPLO
Last action: 2026-03-19
Official status: The committee on EDT deferred the measure.
Effective date: Not listed

Plain English Breakdown

The bill summary does not provide details about the consequences for productions that do not meet the new requirements.

Film Production Tax Credit Requirements

This bill changes the requirements for productions to qualify for a tax credit by adding new rules about completing principal photography and post-production in Hawaii.

What This Bill Does

Changes the rules for getting a film production income tax credit.
Requires productions to complete at least 15% of their principal photography in Hawaii during the same year they apply for the tax credit.
Also requires productions to either complete or commit to completing 15% of post-production work in Hawaii within the same year or later years.
Applies these new rules starting from taxable years after December 31, 2026.

Who It Names or Affects

Film and digital media production companies that want tax credits for their projects in Hawaii.

Terms To Know

Principal photography: The main part of filming a movie or TV show, where the story is shot.
Post-production: Work done after filming, like editing and adding special effects.

Limits and Unknowns

This bill does not specify what happens if productions do not meet these new requirements.
The exact impact on the film industry in Hawaii is unclear without further details.
It's uncertain how many production companies will be affected by this change.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: This amendment updates the requirements for productions to qualify for a tax credit, including completing at least fifteen percent of principal photography and post-production in Hawaii within specific timeframes.

Adds a requirement that productions must complete at least fifteen percent of their principal photography in Hawaii during the same year they are applying for the tax credit.
Requires productions to either complete or commit to completing fifteen percent of their post-production work in Hawaii, either in the same year as qualifying for the tax credit or later years.

The amendment text does not provide details on how compliance with these new requirements will be enforced or verified.
It is unclear what specific consequences there are if a production fails to meet these requirements after receiving notice and an opportunity to correct the issue.

Bill History

2026-03-19 S
The committee on EDT deferred the measure.
2026-03-16 S
The committee(s) on EDT has scheduled a public hearing on 03-19-26 1:00PM; Conference Room 229 & Videoconference.
2026-03-10 S
Referred to EDT, WAM.
2026-03-10 S
Passed First Reading.
2026-03-10 S
Received from House (Hse. Com. No. 171).
2026-03-06 H
Passed Third Reading with none voting aye with reservations; Representative(s) Pierick voting no (1) and Representative(s) Perruso, Sayama excused (2). Transmitted to Senate.
2026-03-06 H
Reported from FIN (Stand. Com. Rep. No. 967-26), recommending passage on Third Reading.
2026-03-04 H
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; Noes: none; and Excused: none.
2026-03-02 H
Bill scheduled to be heard by FIN on Wednesday, 03-04-26 10:00AM in House conference room 308 VIA VIDEOCONFERENCE.
2026-02-18 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and none excused (0).
2026-02-18 H
Reported from ECD (Stand. Com. Rep. No. 422-26) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
2026-02-06 H
The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Ilagan, Hussey, Holt, Tam, Templo, Yamashita, Gedeon; Ayes with reservations: none; Noes: none; and Excused: none.
2026-02-02 H
Bill scheduled to be heard by ECD on Friday, 02-06-26 8:30AM in House conference room 423 VIA VIDEOCONFERENCE.
2026-01-28 H
Referred to ECD, FIN, referral sheet 3
2026-01-26 H
Introduced and Pass First Reading.
2026-01-23 H
Pending introduction.

Official Summary Text

RELATING TO TAXATION.
Motion Picture, Digital Media, and Film Production Income Tax Credit; Qualifications; Principal Photography; Post-production
Amends the requirements for productions to qualify for the Motion Picture, Digital Media, and Film Production Income Tax to include completing at least fifteen per cent of the production's principal photography within the same taxable year the production is qualifying for the film tax credit and completing or committing to complete fifteen per cent of the production's post-production in the State within the same taxable year the production is qualifying for the film tax credit or later taxable years. Applies to taxable years beginning after 12/31/2026. Repeals 1/1/2033. Effective 7/1/3000. (HD1)

Current Bill Text

Read the full stored bill text

HB1941

HOUSE OF REPRESENTATIVES

H.B. NO.

1941

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to taxation
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

����
SECTION
1
.
�
Section 235-17,
Hawaii Revised Statutes, is amended by amending subsection (d) to read as
follows:

����
"(d)
�
To qualify for this tax credit, a production
shall:

����
(1)
�
Meet the
definition of a qualified production specified in subsection (o);

����
(2)
�
Have qualified
production costs totaling at least $100,000;

����
(3)
�
Complete at
least fifteen per cent of the production's principal photography and the
production's post-production in the State within the same taxable year the
production is qualifying for this tax credit;

���
[
(3)
]

(
4)
�

Provide the State a qualified Hawaii promotion, which shall be at
a minimum, a shared-card, end-title screen credit, where applicable;

���
[
(4)
]

(5)
�

Provide evidence of reasonable efforts to hire local talent and
crew;

���
[
(5)
]

(6)
�

Provide evidence when making any claim for products or services
acquired or rendered outside of this State that reasonable efforts were
unsuccessful to secure and use comparable products or services within this
State;

���
[
(6)
]

(7)
�

Provide evidence of financial or in-kind contributions or
educational or workforce development efforts, in partnership with related local
industry labor organizations, educational institutions, or both, toward the
furtherance of the local film and television and digital media industries;

���
[
(7)
]

(8)
�

Provide evidence of reasonable efforts to comply with all
applicable requirements under title 14, including tax return filing and
payments; and

���
[
(8)
]

(9)
�

Provide complete responses to the department of taxation's
inquiries and document requests, in the form prescribed by the department, no
later than ninety days from the inquiry or request;

provided that a taxpayer shall be given notice of
and an opportunity to cure any failure to meet the requirements of this
subsection, including chapter 237, within thirty days of receipt of the notice;
provided further that nothing in this
subsection shall
be interpreted as waiving any act required by this section
."

����
SECTION
2.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION 3.
�
This Act, upon its approval, shall apply to
taxable years beginning after December 31, 2026; provided that on January 1,
2033, section 1 of this Act shall be repealed to coincide with the repeal date
of Act 88, Session Laws of Hawaii 2006, as amended by Act 89, Session Laws of
Hawaii 2013, as amended by Act 143, Session Laws of Hawaii 2017, as amended by
Act 217, Session Laws of Hawaii 2022, and section 235‑17, Hawaii Revised
Statutes, shall be reenacted in the form in which it read on the day before the
effective date of Act 88, Session Laws of Hawaii 2006.

INTRODUCED BY:

_____________________________

Report Title:

Motion
Picture, Digital Media, and Film Production Income Tax Credit; Qualifications;
Principal Photography; Post-production

Description:

Amends
the requirements for productions to qualify for the Motion Picture, Digital
Media, and Film Production Income Tax to include completing at least fifteen
per cent of the production's principal photography and post-production in the
State within the same taxable year the production is qualifying for the Tax
Credit.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.