RELATING TO THE FILM INDUSTRY.

HB2568

HOUSE OF REPRESENTATIVES

H.B. NO.

2568

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to the film industry
.

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

����
SECTION
1.
�
The legislature finds that the
practice of vertical filming, which refers to films and videos shot in a
vertical orientation, has grown in popularity in recent years.
�
The legislature further finds that
capitalizing on the growing popularity of vertical filming could help ensure
that Hawaii's film industry remains competitive and at the forefront of
emerging trends.
�
The legislature
recognizes that there is a need to increase funding available to support the
film industry, particularly through the Hawaii film and creative industries
development special fund.
�
The
legislature also finds that the Hawaii film and creative industries development
special fund receives funding through a fee collected from taxpayers claiming
the motion picture, digital media, and film production income tax credit.
�
Increasing this fee amount would create additional
funding, which could be used to support vertical filming in the State by
supporting set building, grant distribution, training, workforce development,
equipment access, and networking opportunities.

����
Accordingly,
the purpose of this Act is to increase the fee collected from taxpayers
claiming the motion picture, digital media, and film production income tax
credit and require a portion of funds collected from the fee to be used to
support the vertical film industry in the State.

����
SECTION
2
.
�
Section 201-113, Hawaii Revised Statutes, is
amended by amending subsection (a) to read as follows:

����
"
(a)
�

There is established in the state treasury the Hawaii film and creative
industries development special fund into which shall be deposited:

����
(1)
�
Appropriations by
the legislature;

����
(2)
�
Donations and
contributions made by private individuals or organizations for deposit into the
fund;

����
(3)
�
Grants provided by
governmental agencies or any other source;

����
(4)
�
Effective January
2, 2023, all revenues, fees, and charges from the processing of the motion
picture, digital media, and film production income tax credit pursuant to
section 235-17;
provided that eighty per cent of the funds collected
pursuant to section 235‑17(k) shall be expended to support the vertical
film industry in the State;
and

����
(5)
�
Effective
July 1, 2022, all existing and future revenues, fees, and income received by
the department from its management of public facilities that support media and
entertainment workforce and business development, with the exception of the
Hawaii film studio.

����
For the
purposes of this subsection, "vertical film" means video content shot
and presented in a portrait orientation with an image that is taller than it is
wide, typically intended to be viewed on a smartphone screen.
"

����
SECTION
3
.
�
Section 235-17, Hawaii Revised Statutes, is
amended by amending subsection (k) to read as follows:

����
"
(k)
�

Each taxpayer claiming a tax credit under this section shall s
ubmit
to the department of business, economic development, and tourism a fee for the
motion picture, digital media, and film production income tax credit in an
amount equal to [
0.2
]
one
per cent of the tax credit claimed by
the qualified production no later than the deadline stated in subsection
(c).
�
The department of business,
economic development, and tourism may prescribe the form and method by which
this fee is remitted, including through electronic means.
�
The fees collected under this subsection
shall be deposited into the Hawaii film and creative industries development
special fund under section 201-113."

����
SECTION
4.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION 5.
�
This Act, upon its approval, shall apply to
taxable years beginning after December 31, 2026; provided that on January 1,
2033:

����
(1)
�
Section 2 of this Act shall be repealed and
section 201‑113, Hawaii Revised Statutes, shall be reenacted in the form
in which it read on the day prior to the effective date of this Act; and

����
(2)
�
Section 3 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:

Vertical
Filming; Motion Picture, Digital Media, and Film Production Income Tax Credit;
Hawaii Film and Creative Industries Development Special Fund; Fees

Description:

Increases
the fee amount collected from taxpayers claiming the Motion Picture, Digital
Media, and Film Production Income Tax Credit and requires a portion of funds collected
from the fee to be used to support the vertical film industry in the State.

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