RELATING TO THE DEVELOPMENT OF A NATIVE HAWAIIAN FILM AND MEDIA INDUSTRY.

SB3317

THE SENATE

S.B. NO.

3317

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO THE DEVELOPMENT OF A NATIVE HAWAIIAN FILM AND MEDIA INDUSTRY
.

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

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SECTION 1.
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(a)
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The
legislature finds that Hawaii is among the most sought-after filming locations
globally.
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However, the ownership,
long-term economic benefits, and infrastructure development associated with
film and media production predominantly occur outside the State.
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Native Hawaiian history, culture, and
identity have been commercialized through film and other media without significant
Native Hawaiian ownership, workforce engagement, or infrastructure advancement.

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The
legislature also finds that film and media production represent a high-value
global export industry capable of generating sustainable revenue, skilled
employment, tourism demand, and enhanced international brand equity.

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The
legislature recognizes that title 43 Code of Federal Regulations part 50
formally establishes a lawful administrative pathway for the reconstitution and
federal acknowledgment of a Native Hawaiian governing entity.
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This framework for federal recognition
affirms the unique legal and political status of Native Hawaiians, and recognizes
that the reorganization of a Native Hawaiian governing body aligns with the
trust relationship that exists between the United States and the Native
Hawaiian community.

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The
legislature also recognizes that Hale Kapu Moolelo A Alii Ana is a Native
Hawaiian trust established to promote and protect Native Hawaiian culture,
foster economic development, and create workforce opportunities.
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Its structure and organizing efforts align
with the principles and standards set forth in title 43 Code of Federal
Regulations part 50.

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The
legislature further recognizes that Alii Ana Studios, governed by the trust, is
the only Native Hawaiian film studio in history to create two critically
acclaimed, globally recognized, award-winning feature films backed by Academy
Award‑nominated producers that are told entirely through Native Hawaiian
narratives, cast with Native Hawaiian actors, and produced under Native
Hawaiian leadership.
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These films
achieved historic global distribution deals through the American film market,
with the studio's most recent feature film, "Kai", receiving a
national theatrical release in 2026.
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This is the first time in the indigenous history of Hawaiian
storytelling that this feat has been achieved by an independent studio.

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The
legislature notes that Alii Ana Studios has led global marketing campaigns for
top-tier entertainment studios including Warner Bros., Apple TV+, Netflix, and
Legendary Entertainment.
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The studio also
played a foundational role in launching Jason Momoa's production company.
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Alii Ana Studios represents a new generation
of indigenous-led cinematic infrastructure, combining artistic excellence with
cultural stewardship and economic leadership.
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The studio has provided mentorship and employment to Native Hawaiian
creatives, established pathways for indigenous workforce development, and is
preparing for the construction of permanent studio and post-production
facilities that meet global standards.

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The
legislature believes that strategic investment by the State in this proven
studio and its governing trust would ensure compliance with both state and
federal indigenous policy frameworks, while expanding Hawaii's economic base
through full‑cycle, indigenous-led creative productions.

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The
legislature also believes that it is important for the State to align with the
federally recognized self-determination

framework
for Native Hawaiians, support the reemergence of a governing trust, and
establish a robust Native Hawaiian film and media economy centered in cultural integrity,
economic equity, and federal compliance.

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The
legislature further believes that it is vital for the State to:

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(1)
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Develop a permanent Native Hawaiian studio
and post‑production infrastructure;

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(2)
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Facilitate financing for independent
Native Hawaiian film and television productions;

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(3)
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Facilitate the utilization of large
external studio productions to finance infrastructure and workforce development;

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(4)
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Ensure the use of full-cycle production
and extended production timelines within the State;

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(5)
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Incentivize productions' use of time,
resources, and skilled labor within the State; and

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(6)
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Incentivize the creation of paid
apprenticeship opportunities and long-term career pathways for Native Hawaiian
residents.

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(b)
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Accordingly, the purpose of this Act
is to develop a Native Hawaiian-owned and operated film and media industry by:

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(1)
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Establishing and appropriating moneys
for a Native Hawaiian film and media development program within the department
of business, economic development, and tourism; and

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(2)
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Establishing a full-cycle motion
picture production income tax credit.

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SECTION
2.
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Chapter 201, Hawaii Revised Statutes,
is amended by adding a new part to be appropriately designated and to read as
follows:

"
Part
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.
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NATIVE
HAWAIIAN FILM AND MEDIA DEVELOPMENT PROGRAM

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�201-A
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Definitions.
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As used in this
part, unless the context otherwise requires:

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"Department"
means the department of business, economic development, and tourism.

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"Independent
Native Hawaiian production" means a feature film or episodic television
series that is predominantly owned or controlled by a Native Hawaiian entity
and produced under an independent budget model for global distribution.

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"Program"
means the Native Hawaiian film and media development program.

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�201-B
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Native Hawaiian film and media development program;
established.
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(a)
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There is established within the department a
Native Hawaiian film and media development program.

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(b)
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The program shall:

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(1)
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Support independent Native Hawaiian
film and media productions;

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(2)
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Facilitate the establishment and
operation of Native Hawaiian-controlled studio and post-production facilities;

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(3)
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Administer the financing incentives
established under this chapter;

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(4)
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Coordinate workforce training,
apprenticeship programs, and union participation; and

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(5)
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Collaborate with the Hawaii tourism
authority to align film production with tourism and cultural promotion
objectives.

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�201-C
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Designation of eligible entity.
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Hale Kapu Moolelo A Alii Ana is recognized as an eligible Native
Hawaiian trust and operating studio.
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The
trust may participate in and receive support under the program to develop,
manage, and operate film production and post-production facilities and
independent productions.

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�201-D
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Reports.
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The department of
business, economic development, and tourism shall submit a report to the
legislature no later than twenty days prior to the convening of each regular
session detailing the program's activities and specifying, for the most
recently completed fiscal year any:

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(1)
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Funds allocated and expended;

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(2)
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Productions supported;

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(3)
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Infrastructure developed; and

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(4)
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Outcomes related to workforce development
and apprenticeships."

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SECTION
3.
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Chapter
235
,
Hawaii Revised Statutes, is amended by adding a new section to part VI to be
appropriately designated and to read as follows:

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"
�235-
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Full-cycle motion picture
production income tax credit.
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(a)
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Notwithstanding any law to the contrary,
there shall be allowed to each taxpayer subject to the taxes imposed by this
chapter, a full-cycle motion picture production income tax credit that shall be
deductible from the taxpayer's net income tax liability, if any, imposed by
this chapter for the taxable year in which the credit is properly claimed.
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The amount of the credit shall be equal to
fifty per cent of qualified production expenditures incurred within the State,
subject to:

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(1)
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A per-production cap of no less than
$40,000 and no more than $50,000, as determined by rules adopted by the
department of taxation pursuant to chapter 91; and

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(2)
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An aggregate cap of $
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.

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(b)
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The credit allowed under this section shall
be claimed against the net income tax liability for the taxable year.
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For the purposes of this section, "net
income tax liability" means net income tax liability reduced by all other
credits allowed under this chapter.

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(c)
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If the tax credit under this section exceeds
the taxpayer's income tax liability, the excess of credits over liability shall
be refunded to the taxpayer; provided that no refunds or payment on account of
the tax credits allowed by this section shall be made for amounts less than $1.
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All claims, including any amended claims, for
tax credits under this section shall be filed on or before the end of the
twelfth month following the close of the taxable year for which the credit may
be claimed.
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Failure to comply with any
of the foregoing provision shall constitute a waiver of the right to claim the
credit.

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

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(1)
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Be a domestic or international m
otion
picture or television studio production of any size;

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(2)
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Utilize a qualified Native Hawaiian
studio facility;

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(3)
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Complete full-cycle production
within the State;

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(4)
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Demonstrate, to the satisfaction of
the department of business, economic development, and tourism that a portion of
tax credit's value will be reinvested in Hawaii-based infrastructure, which may
include funding for:

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(A)
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The construction or expansion of
studio and post‑production facilities;

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(B)
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The acquisition of production and
post-production equipment;

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(C)
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Funding for workforce training and
paid apprenticeship programs; or

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(D)
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The development of technical
capabilities necessary for completing full-cycle production within the State;

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(5)
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Employ a Hawaii-based workforce and
union labor, and pay, where applicable, industry-standard wages;

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(6)
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Offer paid apprenticeship
opportunities that facilitate skill transfer over extended production
timelines; and

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(7)
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Establish pathways for long-term
employment within the State's film and media industry.

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(e)
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Noncompliance with reinvestment requirements
of subsection (d)(4) shall result in the partial or complete recapture of any
tax credit authorized by this section.

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(f)
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To receive the tax credit, the taxpayer shall
first prequalify the production for the credit by registering with the
department of business, economic development, and tourism during the
development or preproduction stage.

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(g)
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The department of taxation:

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(1)
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Shall prepare forms as may be
necessary to claim a credit under this section;

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(2)
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May require the taxpayer to furnish
information to ascertain the validity of the claim for credit made under this
section; and

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(3)
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May adopt rules pursuant to chapter
91 necessary for the purposes of this section.

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(h)
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Each taxpayer claiming a tax credit under
this section shall submit to the department of business, economic development,
and tourism a written, sworn statement that includes any information the
department deems necessary for the purposes of the report required by
subsection (i).

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(i)
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The department of business, economic
development, and tourism shall submit a report to the legislature no later than
twenty days prior to the convening of each regular session specifying, for the
most recently completed taxable year:

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(1)
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The aggregate tax credits authorized
under this section; and

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(2)
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The reinvestments made by taxpayers
who qualified for this tax credit as required by subsection (d)(4),

provided
that the report required pursuant to this section may be combined with the
report required pursuant to section 201-D.

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(j)
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For the purposes of this section:

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"Full-cycle
motion picture production" means the completion of a motion picture's
production and post production process within the State, including principal
photography, picture editing, color grading, sound design, music scoring,
visual effects, final mastering, and delivery.

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"Qualified
Native Hawaiian studio facility" refers to a film production or
post-production facility that is owned or operated by an entity recognized by
the department of business, economic development, and tourism as being Native
Hawaiian-controlled and situated within the State.

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"Qualified
production expenditures" means expenditures incurred within the State that
are directly related to production, post-production, workforce compensation,
and infrastructure investment, as determined by the department of business,
economic development, and tourism.
"

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SECTION
4.
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There is appropriated out of the
general revenues of the State of Hawaii the sum of $5,000,000 or so much
thereof as may be necessary for fiscal year 2026-2027 to support the Native
Hawaiian film and media development program established pursuant to section 2
of this Act, to be allocated as follows:

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(1)
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$1,000,000 for industry launch and
platform activation, which includes studio activation, equipment acquisition,
the launch of workforce and apprenticeship programs, and preparation for global
distribution; and

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(2)
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$4,000,000 for the development,
production, post-production, and delivery of three independent Native Hawaiian
feature films intended for global distribution.

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The
sum appropriated shall be expended by the department of business, economic
development, and tourism for the purposes of this Act.

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SECTION 5.
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This Act does
not affect rights and duties that matured, penalties that were incurred, and
proceedings that were begun before its effective date.

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SECTION
6.
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New statutory material is
underscored.

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SECTION
7.
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This Act shall take effect on July 1,
2026; provided that section 3 shall apply to taxable years beginning after
December 31, 2025.

INTRODUCED BY:

_____________________________

Report Title:

DBEDT;
DOTAX; Native Hawaiians; Film and Media Industry; Tax Credit; Appropriations

Description:

Establishes
and appropriates moneys for a Native Hawaiian film and media development
program within the Department of Business, Economic Development, and Tourism.
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Establishes a full-cycle production tax credit
for taxable years beginning after 12/31/2025.
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Provides the Department of Taxation with certain duties and
responsibilities in administering the tax credit.

The summary description
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not legislation or evidence of legislative intent.