HawaiiHawaii measure sets county rates and limits for production tax credits
The measure would set county-based credit rates, require claimants to report costs and hiring, and set yearly limits and a 2038 sunset.
What it does
Eligible productions would claim a credit based on Hawaii costs: 27 percent in a county with over 700,000 residents and 32 percent in other counties.
Taxpayers claiming the credit would report production costs, credits, and hiring. An independent certified public accountant would check the information.
Credits would be limited to $17 million per production, except when qualified costs reach $60 million, and to $60 million each year. Excess claims could carry into a later year.
The measure would include certain streaming series and specials among eligible productions, with episode limits and exclusions. It would set January 1, 2038 as the credit’s sunset date.
Argument forEligible productions could claim credits based on Hawaii costs, with higher rates in counties with 700,000 or fewer residents and no per-production cap for costs of at least $60 million.
Argument againstIf yearly claims exceed the limit, productions could wait for later years to claim credits, and carried claims cannot be made after December 31, 2037.
More detail
The measure would set credit rates at 27 percent or 32 percent of qualified production costs. The rate depends on county population: 27 percent applies in a county with over 700,000 residents, and 32 percent applies in a county with 700,000 or fewer residents. Costs must be incurred in Hawaii and meet the definition of qualified production costs. A production spanning counties with different rates may divide its costs between those counties. Section 1 would apply to taxable years beginning after December 31, 2025.
Taxpayers claiming the credit would submit a sworn statement and an independent certified public accountant’s certification. This applies to every taxpayer claiming the credit for a qualified production. The statement must list eligible costs, credits claimed, and total and local hires by category and county. The accountant must verify that information and other representations made to claim the credit, using procedures set by the state business and tax departments. Submissions would be due within 90 days after the end of each taxable year in which the production spent eligible costs.
The measure would set a $17 million credit limit per production, except for productions with at least $60 million in qualified production costs, and a $60 million yearly limit. The per-production limit applies to each qualified production; the yearly limit applies to all credits allowed under the section in a particular year. If credits applied for in a year exceed that year’s total limit, the excess would be treated as applied for in the next year. Carried claims could not be made after December 31, 2037.
The measure would define eligible production categories to include specified streaming works and set a January 1, 2038 sunset for the credit provisions. The listed categories include specified film, television, streaming, advertising, music video, and interactive game productions. Streaming series would qualify within episode limits: up to 22 episodes for a broadcast television season and up to eight for an ongoing streaming series season. Additional episodes above those limits would count as a separate production. The definition excludes news, public affairs, non-national magazine or talk shows, televised sports, fundraising productions, certain private-purpose productions, and productions with material prohibited by chapter 712. The credit provisions would apply to eligible costs incurred before January 1, 2038, and section 235-17 would be reenacted in its prior form on that date.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jul 7Act 185, 07/06/2026 (Gov. Msg. No. 1287).Latest
- Jul 7Act 185, on 07/06/2026 (Gov. Msg. No. 1287).Became Law
- May 8Received notice of passage on Final Reading in House (Hse. Com. No. 888).Minor
- May 8Enrolled to Governor.To Governor
- May 6Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none. Noes, 0 (none). Excused, 0 (none).Major
- Vote recorded Passed Final Reading, as amended (CD 1). Result: pass.Upper
- Vote recorded Passed Final Reading as amended in CD 1. Result: pass.Lower
- May 6Passed Final Reading as amended in CD 1 with none voting aye with reservations; Representative(s) Cochran, Lowen voting no (2) and Representative(s) Alcos excused (1).Major
- May 6Received notice of Final Reading (Sen. Com. No. 816).Minor
- May 1Conference Committee Meeting will reconvene on Friday, 05-01-26 at 11:30AM in Conference Room 411.
- Vote recorded The Conference Committee recommends that the measure be Passed, with Amendments. Result: pass.Lower
- Vote recorded The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. Result: pass.Upper
- May 1The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 4 Aye(s): Senator(s) DeCoite, Wakai, Fukunaga, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.Minor
- May 1The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 3 Ayes: Representative(s) Ilagan, Hussey, Gedeon; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.Minor
- May 1Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 202-26).
- May 148 Hrs. Notice (as amended CD 1) 05-06-26.
- May 1Reported from Conference Committee (Conf Com. Rep. No. 202-26) as amended in (CD 1).
- May 1Forty-eight (48) hours notice Wednesday, 05-06-26.
- Apr 30Conference Committee Meeting will reconvene on Friday 05-01-26 8:01AM in conference room 411.
- Apr 28Conference committee meeting to reconvene on 04-30-26 9:00AM; Conference Room 411.
- Apr 27Conference committee meeting to reconvene on 04-28-26 9:00AM; Conference Room 411.
- Apr 24Conference committee meeting scheduled for 04-27-26 9:00AM; CR 411.
- Apr 22Senate Conferees Appointed: DeCoite Chair; Wakai Co-Chair; Fukunaga, Fevella.
- Apr 22Received notice of Senate conferees (Sen. Com. No. 723).Minor
- Apr 21House Conferees Appointed: Ilagan, Hussey Co-Chairs; Gedeon.
- Apr 21Received notice of appointment of House conferees (Hse. Com. No. 800).Minor
- Apr 10Received from House (Hse. Com. No. 515).Minor
- Apr 10Senate disagrees with House amendments.Minor
- Apr 10Received notice of disagreement (Sen. Com. No. 564).Minor
- Apr 9Reported from FIN (Stand. Com. Rep. No. 1999-26), recommending passage on Third Reading.
- Vote recorded Passed Third Reading. Result: pass.Lower
- Apr 9Passed Third Reading with none voting aye with reservations; none voting no (0) and Representative(s) Cochran excused (1). Transmitted to Senate.Passed House
- Apr 7The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 16 Ayes: Representative(s) Todd, Takenouchi, Hartsfield, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Morikawa, Perruso, Templo, Yamashita, Alcos, Gedeon, Reyes Oda; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.Minor
- Vote recorded The committee on FIN recommend that the measure be PASSED, UNAMENDED. Result: pass.Lower
- Apr 2The committee(s) on FIN recommend(s) that the measure be deferred until 04-07-26.Minor
- Apr 2Bill scheduled for decision making on Tuesday, 04-07-26 10:10AM in conference room 308 VIA VIDEOCONFERENCE.
- Mar 31Bill scheduled to be heard by FIN on Thursday, 04-02-26 2:00PM in House conference room 308 VIA VIDEOCONFERENCE.
- Mar 25Reported from ECD (Stand. Com. Rep. No. 1426-26) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
- Vote recorded Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN. Result: pass.Lower
- Mar 25Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Matsumoto, Perruso excused (2).Minor
- Mar 20The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Ilagan, Hussey, Tam, Templo, Yamashita, Gedeon; Ayes with reservations: none; Noes: none; and Excused: none.Minor
- Vote recorded The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. Result: pass.Lower
- Mar 16Bill scheduled to be heard by ECD on Friday, 03-20-26 9:30AM in House conference room 423 VIA VIDEOCONFERENCE.
- Mar 12This measure has been deleted from the meeting scheduled on Friday 03-13-26 10:00AM in conference room 423 VIA VIDEOCONFERENCE.
- Mar 10Referred to ECD, FIN, referral sheet 15Minor
- Mar 10Bill scheduled to be heard by ECD on Friday, 03-13-26 10:00AM in House conference room 423 VIA VIDEOCONFERENCE.
- Mar 6Pass First ReadingMinor
- Mar 5Report Adopted; Passed Third Reading, as amended (SD 2). Ayes, 24; Aye(s) with reservations: none. Noes, 0 (none). Excused, 1 (Senator(s) Ihara). Transmitted to House.Passed Senate
- Vote recorded Report Adopted; Passed Third Reading, as amended (SD 2). Result: pass.Upper
- Mar 5Received from Senate (Sen. Com. No. 27) in amended form (SD 2).Minor
- Feb 24Reported from WAM (Stand. Com. Rep. No. 2714) with recommendation of passage on Third Reading, as amended (SD 2).
- Feb 2448 Hrs. Notice 03-05-26.
- Feb 19The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 11 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Kidani, Richards.Minor
- Vote recorded The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. Result: pass.Upper
- Feb 13The committee(s) on WAM will hold a public decision making on 02-19-26 10:30AM; Conference Room 211 & Videoconference.
- Feb 11Reported from EDT (Stand. Com. Rep. No. 2149) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.
- Feb 11Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.Minor
- Feb 3The committee(s) on EDT recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in EDT were as follows: 5 Aye(s): Senator(s) DeCoite, Wakai, Fukunaga, Kim, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.Minor
- Vote recorded The committee(s) on EDT recommend(s) that the measure be PASSED, WITH AMENDMENTS. Result: pass.Upper
- Jan 30The committee(s) on EDT has scheduled a public hearing on 02-03-26 1:00PM; Conference Room 229 & Videoconference.
- Jan 28Referred to EDT, WAM.Minor
- Jan 23Introduced.Minor
- Jan 23Passed First Reading.Introduced
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