Hawaii

Register to do business with the Department of Commerce and Consumer Affairs in HI; obtain a General Excise Tax (GET) license from the Department of Taxation (DOTAX); pre-qualify with HFO/CID at least seven working days PRIOR to the first HI shoot date; meet the minimum in-state spending requirement of at least $100,000; deduct and remit 4.5% on all payments made to any loan out company for services performed on any island; submit a fee equal to 0.2% of the tax credit claimed; make (and document) reasonable efforts to hire local talent and crew; not later than 90 days following the end of the calendar year in which the qualified production costs were made, submit a production report to HFO/CID; file all tax returns, including amended tax returns with the HI DOTAX, within 12 months of the close of the production company’s taxable year in which production expenditures were made; and provide evidence of a financial or in-kind contribution equal to at least 0.1% of qualified HI expenditures or $1,000, whichever is greater, or educational or workforce development efforts toward the furtherance of the local film, television, and digital media industries.

Qualified spend includes all in-state costs incurred by a qualified production that are subject to HI GET or HI income tax. Although costs incurred for the use of state and county facilities and locations are not subject to GET, they do qualify for the incentive. Government imposed fines, penalties, or interest incurred within HI by the qualified production do not qualify. Goods or services obtained from out-of-state vendors may qualify if 1) the applicant provides evidence it was unsuccessful in its attempt to secure comparable items within HI, 2) HI Use Tax is paid at the highest rate, and 3) proof of payment is verified.

This program is administered on a first-come, first-served basis. HI offers a 22% or 27% refundable tax credit on all qualified production costs. Payments to a loan out company for services provided in HI will qualify only if the loan out company registers to do business in HI, obtains a GET license, and withholding is deducted and remitted on all payments made to the loan out company. The production company must provide a Tax Advisory Notice (and obtain acknowledgement that the advisory was received) to every contractor, vendor, loan out company, or other agent providing goods or performing services in HI that does not have a GET license. The maximum credit any individual project may earn is $17 million. If the total amount of credits applied for in any year exceeds the $50 million funding cap, the excess will be treated as applied for in the subsequent year. This program is scheduled to sunset on December 31, 2032.