As if our spectacular locations, welcoming climate, and relative proximity to the U.S. mainland weren't enticing enough, the state of Hawaii offers a generous production tax credit that may be applied to film and television productions:

15-20% MOTION PICTURE, DIGITAL MEDIA, & FILM PRODUCTION INCOME TAX CREDIT

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. The credit equals 15% of qualified production costs incurred on Oahu, and 20% on the neighbor islands (Big Island, Kauai, Lanai, Maui, Molokai).

Overview & Instructions:

• Overview & Instructions for the 15-20% Tax Credit (.pdf)
• FAQs About the 15-20% Tax Credit (.pdf)- Frequently asked questions about the credit, including what is eligible as a "qualified production cost"
• Tax Information Release No. 2006-02 (.pdf) - Additional guidelines and examples  on what is eligible as a "qualified production cost"
• Tax Information Release No. 2009-05 (.pdf) - Regarding administrative rules relating to film related tax credits
• Tax Information Release No. 2010-04 (.pdf) - Most recent TIR regarding the interpretation of the term “qualified production” for purposes of administering the refundable Motion Picture, Digital Media, and Film Production Income Tax Credit available under Section 235-17, Hawaii Revised Statutes
• Statute: Act 88/Hawaii Revised Statutes §235-17

Required Forms:

• PRODUCTION REGISTRATION FORM (fillable .pdf) - Due at least one week prior to first Hawaii shoot date. For productions to be shot over two consecutive tax years, please use the following application form: Split Year – Production Registration Form
• HAWAII PRODUCTION REPORT (fillable .pdf) - Due no later than 90 days following the end of each taxable year in which qualified production costs were expended.

Budget/Expenditure Report Templates:

These templates provide an example of the level of detail required on the Hawaii expenditure reports you need to submit with your Hawaii Production Report. You may fill them out directly, or you may use your own budget formats as long as the detail provided is equivalent to the detail found in these templates.

Please note the multiple worksheets on different tabs in each document.

• FILM & TV EXPENDITURE REPORT TEMPLATE (.xls)
  

• COMMERCIAL & MUSIC VIDEO EXPENDITURE REPORT TEMPLATE (.xls)

100% HIGH TECHNOLOGY BUSINESS INVESTMENT TAX CREDIT

This credit was established by Act 221 in 2001 and amended by Act 215 in 2004, hence it is commonly referred to as "Act 221" or "Act 215." It is a non-refundable income tax credit applicable to Hawaii taxpayers that invest in qualified companies producing "performing arts products," including film, television, video, audio, and animation products. The credit is equal to 100% of the investment amount, payable over five years.

In 2009, the credit was amended by SB 199.  For investments made on or after May 1, 2009, credits are now limited to 80% of a taxpayer's tax liability for tax years 2009 and 2010, and no credit carryovers or multiples are allowed.

This credit sunset on December 31, 2010 and is no longer available.  

Overview & Instructions:

• Overview of 100% Investment Tax Credit (.pdf)
• Department of Taxation Announcement No. 2009-23 (.pdf) - The Department of Taxation's announcement on SB 199, the bill which amended Act 221.
  
• This credit is administered by the Hawaii Department of Taxation. See the Department's High-Tech Tax Incentive Section for detailed instructions.

• Statute: Hawaii Revised Statutes §235-110.9     
  

ROYALTIES TAX EXEMPTION

Royalties derived from performing arts products are excluded from a Hawaii taxpayer's income and not subject to state income tax.

Overview & Instructions:

• Overview of Royalties Tax Exemption (.pdf)
  
• Statute: Hawaii Revised Statutes §235-7.3

For further information, contact:

• Hawaii Film Office: 808-586-2570 or incentives@hawaiifilmoffice.com
• Hawaii Department of Taxation's Rules Office: 808-587-1569