RELATING TO TAXATION.

Taxes

Active

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

Sponsor: HUSSEY, AMATO, BELATTI, GRANDINETTI, ILAGAN, IWAMOTO, KAPELA, KILA, LEE, M., MATSUMOTO, MURAOKA, OLDS, PERRUSO, POEPOE, REYES ODA, SHIMIZU, SOUZA, TAM
Last action: 2026-03-10
Official status: Referred to EDT, WAM.
Effective date: Not listed

Plain English Breakdown

The bill text and summary do not provide information on what happens to unused credits after the specified date.

Increasing Tax Credits for Film Production

This bill increases the yearly limit on tax credits for film production from $50 million to $60 million and extends the expiration date of these credits until January 1, 2038.

What This Bill Does

Increases the annual cap on tax credits for motion picture, digital media, and film production from $50 million to $60 million.
Extends the sunset (expiration) date of the tax credit program to January 1, 2038.

Who It Names or Affects

Film production companies that qualify for the tax credits under Hawaii Revised Statutes section 235-17.

Terms To Know

Tax Credit: A reduction in taxes owed to the government, often used as an incentive for certain activities like film production.
Sunset Date: The date when a law or program expires and is no longer valid unless renewed.

Limits and Unknowns

The bill does not specify what happens to unused credits after December 31, 2032.
It's unclear if the changes will lead to more film production in Hawaii.

Amendments

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

HD1

Hawaii published version HD1

Plain English: This amendment increases the annual cap on tax credits for motion picture, digital media, and film production from $50 million to $60 million and extends the sunset date for these tax credits until January 1, 2038.

Increases the annual cap on tax credits from $50 million to $60 million.
Extends the expiration of the tax credit program to January 1, 2038.

The amendment text does not provide details about how excess credits will be handled after December 31, 2037.

Bill History

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. 179).
2026-03-06 H
Passed Third Reading with none voting aye with reservations; none voting no (0) and Representative(s) Perruso, Sayama excused (2). Transmitted to Senate.
2026-03-06 H
Reported from FIN (Stand. Com. Rep. No. 965-26), 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.
2026-02-17 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 Representative(s) Cochran, Lee, M., Poepoe excused (3).
2026-02-17 H
Reported from ECD (Stand. Com. Rep. No. 293-26) 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; Aggregate Cap; Sunset Date
Increases the aggregate cap on credits allowed in any given year for the Motion Picture, Digital Media, and Film Production Income Tax Credit from $50,000,000 to $60,000,000. Extends the sunset of the tax credit to 1/1/2038. Applies to taxable years beginning after 12/31/2026. Repeals 1/1/2038. Effective 7/1/3000. (HD1)

Current Bill Text

Read the full stored bill text

HB2037

HOUSE OF REPRESENTATIVES

H.B. NO.

2037

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 (n) to read as follows:

����
"(n)
�

The total amount of tax credits allowed under this section in any
particular year shall be [
$50,000,000; however, if
]
$60,000,000.
�
If
the total amount of credits applied
for in any particular year exceeds the aggregate amount of credits allowed for
that year under this section, the excess shall be treated as having been
applied for in the subsequent year and shall be claimed in the subsequent year;
provided that no excess shall be allowed to be claimed after December 31, 2032.
"

����
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, 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; Aggregate Cap

Description:

Increases
the aggregate cap on credits allowed in any given year for the Motion Picture,
Digital Media, and Film Production Income Tax Credit from $50,000,000 to
$60,000,000.

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