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Honolulu Film Office urges modernization of tax credit as major productions spotlight Hawaii
Summary
Valeria Constantino of the Honolulu Film Office told the Council committee that Hawaii’s film tax credit remains active and that modernizing its terms — including per‑production caps and streamer‑era rules — is key to keeping large productions and long‑running TV series in the state.
Valeria Constantino, senior film industry development specialist with the Office of Economic Revitalization, briefed the Honolulu City Council Committee on Innovation, Technology and Entertainment on May 29 about the status of Hawaii’s film industry and the need to modernize the state’s film tax credit to retain large productions and attract new projects.
The film office framed the industry as an economic diversification strategy: it said productions bring large, immediate spending to the islands and support local jobs across multiple sectors. Constantino cited DBEDT cost‑benefit figures — in 2023, the industry generated increases to gross domestic product and earnings, and she said studies show that every dollar spent on the film tax credit produced roughly $4 in GDP and about $2.50 in earnings.
Why the credit matters now
Constantino said high‑profile projects are elevating Hawaii’s global visibility — noting Lilo & Stitch’s box‑office performance and the Apple TV series Chief of War, which she described as “entirely about us, entirely about our history.” She warned, however, that a per‑production cap and other credit provisions contributed to parts of some large projects being filmed outside Hawaii. She pointed to one production that filmed approximately $45–50 million worth of work in Hawaii and moved remaining work to New Zealand because the project exceeded the state’s per‑production cap.
The industry’s economic footprint
Constantino gave production examples to quantify local impact: Rescue Hi Surf hired about 788 crew and 1,350 extras — roughly 2,100 people — and spent about $65 million, with approximately $31 million on local labor and $33 million on vendors. She said NCIS Hawaii spent nearly $80 million, hired about 1,100 local people, and contributed roughly $104 million to GDP.
Legislative context and next steps
Constantino told the committee Senate Bill 732 did not pass in the regular session and said some “key elements” of that bill could be pulled and considered in a special session if one occurs. She also described House Bill 796, which would have imposed a five‑year sunset on tax credits, as particularly challenging for the industry because it would shorten the business certainty productions and investors rely on when planning projects.
The film office outlined outreach strategies including trade missions to Los Angeles, a producer‑in‑residence program developed with the Hawai‘i International Film Festival to bring producers to Hawaii, and workforce development measures to lift local talent into higher creative roles. Constantino said the office is working with DBEDT, county film offices and other stakeholders to promote a “clear runway” for productions and to advertise that “we have a valid tax credit.”
Questions from council members covered project cancellations, the role of studio financial decisions, and how the state and counties can coordinate to secure future seasons of TV series. Constantino said production cancellations have multiple causes — ratings, studio balance‑sheet decisions, or development failures — and noted the industry is cyclical; she urged that business certainty in the form of a stable, modernized credit be prioritized.
Public comment and university studio project
Angela Melody Young of CARES testified in support of Senate Bill 732 and the University of Hawai‘i West O‘ahu studio initiative. Constantino confirmed that the university completed an RFP and selected a developer but said construction and activation of a studio facility depend on demonstrable pipeline work to fill the facility; she described the project as “shovel ready” but effectively on hold until pipeline demand resumes.
What the Council can do
During Q&A, committee members discussed options for local support and for coordinating with state stakeholders if a special session occurs. Constantino said industry stakeholders were identifying narrow legislative priorities to present if a special session were called and stressed the value of demonstrating to studios that Hawaii can host large productions with available crew, facilities and locations.
Next steps
The film office will continue outreach, workforce development and coordination with DBEDT and county offices. Committee members offered to assist in outreach and legislative strategy if a special session is scheduled.
