27% Tax Credit
KAUAI offers a generous 27% tax credit for motion picture, digital media and film production.
This is a refundable tax credit based on a production company’s Hawaii expenditures while producing a qualified film, television, commercial, or digital media project.
This is a refundable tax credit based on a production company’s qualified Hawaii expenditures while producing a qualified film, television, commercial, or digital media project.
Requirements:
Register with the Hawaii Film Office/Department of Business, Economic Development & Tourism at least seven days PRIOR to the Start (first day) of Principal Photography (SOPP) in Hawai’i;
Meet the minimum in-state spending requirement of at least $100,000;
Make reasonable efforts to hire local talent and crew Hawaii Film Office | Crew & Talent;
Every person making a payment to a loan-out company and claiming a tax credit to deduct and withhold GET in an amount equal to the highest rate of tax plus any applicable county surcharge for all payments made to the loan-out company for services performed in the state;
Provide evidence when making any claim for products or services acquired or rendered outside of Hawai’i that reasonable efforts were unsuccessful to secure and use comparable products or services within the state.
Requires each taxpayer (filer) claiming the motion picture, digital media, and film production income tax credit to submit a fee in an amount equal to 0.2 % of the tax credit claimed by the qualified production;
Provide evidence of financial or in-kind contributions or educational or workforce development efforts toward the furtherance of the local film, television and digital media industries that is valued at 0.1% of the productions Hawai’i Spend or $1000, whichever is greater.
Note: Productions registered after Jan 1, 2023 are no longer required to secure a Verification (AUP) Review, but we do encourage it for filings with over $1M in qualified production costs.
The refundable production tax credit also includes the following:
- $50 million annual spending ceiling, but ACT 143 also provides that once the $50 million aggregate figure is reached that productions may claim from the subsequent year.
- $17 million per production credit cap (applies to productions registered in 2023 CY or after);
- Qualifies certain productions with Internet-only distribution;
- Allows State and County location and facilities fees as a qualified expenditures;
Qualified Spend: The qualified spend includes all in-state costs incurred by a qualified production that are subject to Hawai’i State General Excise Tax (GET) or Income Tax.
- Costs incurred for the use of state and county facilities and locations, although not subject to GET, do qualify for the incentive.
- Insurance premiums from out-of-state insurance companies, fees to obtain a verification review from out-of-state CPA firms (unless registered to do business in the State of Hawai’i) do not qualify.
- Government imposed fines, penalties, or interest incurred within Hawai’i by the production do not qualify.
- ALL banking fees, USPS postage expenditures do not qualify.
Learn More:
Hawaii Film Office
Tel: 808-586-2570
Email: DBEDT.film.incentives@hawaii.gov
Website: www.filmoffice.hawaii.gov
Hawaii Department of Taxation’s Rules Office
Tel: 808-587-1530
Website: www.tax.hawaii.gov