If enacted, HB 1707 would amend Section 235-17 of the Hawaii Revised Statutes, thereby expanding the range of income tax credits available based on local hiring practices and production expenditures. The proposed structure includes credits that can be as high as 30% for productions hiring a minimum percentage of local talent. This shift aims to not only attract more productions to Hawaii but also to ensure that local residents benefit from the jobs created within the industry.
Summary
House Bill 1707 focuses on amending the existing income tax credit system related to film production in Hawaii. The bill intends to enhance the incentives for motion picture, digital media, and film productions, particularly to stimulate local economic activity and job creation. It recognizes the importance of the film industry in Hawaii’s diversified economy while acknowledging that the current tax credits do not adequately reflect the industry's growth. Drawing from the successful model in Georgia, where significant tax incentives boosted the local film industry, the bill proposes to adjust the amounts of income tax credits available for qualifying productions operating in Hawaii.
Contention
There is anticipated debate around the bill's provisions, especially regarding its potential to displace existing businesses or to alter the competitive landscape for film production across states. Some critics may argue that the bill could lead to inequitable access to these tax credits, favoring larger productions over smaller, local filmmakers. Additionally, considerations around ensuring compliance with hiring stipulations and promotional obligations may trigger discussions about governance and the monitoring of production activities. Overall, the bill aspires to position Hawaii as a competitive location for film production by enhancing its attractiveness through fiscal incentives.