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Committee backs film tax-credit fixes: carryforward, GET changes and local-hire incentives
Summary
The committee passed SB 732 with multiple amendments addressing the film-and-television tax credit: restoring carryforward, clarifying episode-count and streamer definitions, addressing general excise tax on payroll companies, and adding local-hire incentive language. Supporters warned a lapse in certainty is deterring productions.
The House Committee on Economic Development and Technology voted to pass Senate Bill 732 with several amendments aimed at stabilizing Hawaii’s film and television tax-credit program and improving competitiveness.
DBEDT and the Honolulu Film Office urged restoring a carryforward mechanism and clarifying treatment of streaming productions and payroll-company general excise tax (GET) liabilities. “We are at a critical juncture,” a Honolulu Film Office representative said, cautioning that the state risks losing follow‑on seasons and large productions without clearer, long-term certainty.
Industry unions and local production groups pushed for measures to increase local hiring and to notify unions before productions begin. Toyana Scanlon, president of IATSE Local 665, urged reinstating rollover language so projects that span calendar years do not lose credits between years. Teamsters Local 996 proposed an amendment requiring producers to contact local labor unions before start dates to maximize local hiring.
Several witnesses also urged treating entertainment payroll companies consistently for GET or restoring manufacturing classification to lower tax costs. The Tax Foundation noted earlier committee work (House Bill 1478) that addressed related GET concerns and suggested revisiting that language.
Committee amendments accepted DBEDT and Honolulu Film Office suggestions, adopted language to address episode-count and streamer definitions for tax-credit eligibility, and instructed staff to work on GET exemptions for payroll companies. The committee reported SB 732 passed with amendments; Representative Holt was excused.
