SB 1629 Hawaii Senate · 2025 Regular Session

RELATING TO TAXATION.

Summary

Increases the motion picture, digital media, and film production income tax credit for qualified productions that utilize qualified production facilities located within the State. Changes the cap amount and aggregate cap amount of the motion picture, digital media, and film production income tax credit to unspecified amounts. Exempts from the general excise tax reimbursement to a motion picture project employer for employee wages, salaries, payroll taxes, insurance premiums, and employment benefits. Effective 7/1/2050. (SD1)

Issues: ✓ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 23, 2025 Last action Feb 14, 2025

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What changed between versions

SB1629 → SB1629_SD1 · 5 edits

MODERATE

This bill modernizes Hawaii's film and media production tax credit program by increasing the credit percentage for productions using qualified state facilities, removing specific dollar caps on credits, and adding new exemptions for payroll reimbursements to reduce the general excise tax burden on film companies.

Scope change

The bill expands the scope of the tax credit program to include an additional 5% credit for productions using qualified facilities and clarifies eligibility criteria for various production types.

FISCAL

Removed specific dollar caps on the total tax credits per production and the annual aggregate credit limit, replacing them with blank fields for future legislative action.

ELIGIBILITY

Added an additional 5% tax credit for productions that utilize qualified production facilities located within the State of Hawaii.

DEFINITION

Added new definitions for 'qualified production facility' requiring facilities to be located on 7-10 acre sites, constructed after December 31, 2024, and costing at least $100 million to design and construct.

EXEMPTIONS

Added a new general excise tax exemption for motion picture project employers reimbursing client companies for employee wages, salaries, payroll taxes, insurance premiums, and benefits.

TIMELINE

Set the effective date for the general excise tax exemption to July 1, 2025, while the tax credit changes apply to taxable years beginning after December 31, 2024.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 14, 2025

Committee

Reported from EDT (Stand. Com. Rep. No. 661) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Feb 13, 2025

Upper · Passed

The committee(s) on EDT recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in EDT were as follows: 4 Aye(s): Senator(s) DeCoite, Wakai, Fukunaga; Aye(s) with reservations: Senator(s) Kim ; 1 No(es): Senator(s) Awa; and 0 Excused: none.

upper

Feb 10, 2025

Upper · Passed

The committee(s) on EDT has scheduled a public hearing on 02-13-25 1:01PM; Conference Room 229 & Videoconference.

upper

Jan 27, 2025

Committee

Referred to EDT, WAM.

upper

Jan 23, 2025

Introduced

Introduced.

upper

1 primary · 0 co-sponsors