Hawaii Production Tax Incentives
Overview of 20-25% Motion Picture, Digital Media,
and Film Production Income Tax Credit
The Motion Picture, Digital Media, and Film Production Income Tax Credit is a refundable income tax credit based on a production company's Hawaii expenditures while producing a qualified film, television, commercial, or digital media project.
What is the tax credit?
- The credit is calculated as a percentage of "qualified production costs" incurred in Hawaii
- The credit shall be claimed against the Hawaii taxpayer's net income tax liability for the taxable year in which the credit is properly claimed
- If the credit exceeds net income tax liability, the excess of credits over liability shall be refunded
- The credit was first established by Act 88 in 2006 and revised by Act 89 in 2013. It is now effective through December 31, 2018
- The credit is administered by the Hawaii Film Office and the Hawaii Department of Taxation
How much is the tax credit?
- 20% of total "qualified production costs" incurred while filming on Oahu
- 25% of total "qualified production costs" incurred while filming on a neighbor island
- There is an $15 million credit cap per "qualified production"
Who is eligible for the tax credit?
A company that produces a "qualified production" that spends a minimum of $200,000 in "qualified production costs" in Hawaii, and can be categorized as one of the following:
- Feature film (narrative, documentary, experimental, student)
- Short film (narrative, documentary, experimental, student)
- Television movie
- Commercial (an advertising message filmed within 6 consecutive weeks in Hawaii for dissemination via television broadcast or theatrical distribution)
- Music video
- Interactive game
- Television series pilot
- Single season (up to 22 episodes) of a television series regularly filmed in the State (if the number of episodes per single season exceeds 22, additional episodes for the same season shall constitute a separate "qualified production")
- Television special
- Single television episode that is not part of a TV series regularly filmed or based in the State
- National magazine show
- National talk show
- Productions with Internet-only distribution
Which "qualified production costs" are used in calculating the credit amount?
"Qualified production costs" must meet all of the following requirements:
- Costs that are incurred in Hawaii
- Costs that are subject to Hawaii's general excise tax or income tax
- Costs that have not been financed by investments for which an investment tax credit under Hawaii Revised Statutes §235-110.9 ("Act 221 credits") was or will be claimed
For more information on specific "qualified production costs," please see the FAQ about the 20-25% Credit here, and the tax information releases referenced below.
Statutory and Tax References:
For further information, contact:
Hawaii Film Office
808-586-2570
incentives@hawaiifilmoffice.com
filmoffice.hawaii.gov
Hawaii Department of Taxation's Rules Office
808-587-1530
tax.hawaii.gov