STAND. COM. REP. NO. 1000-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 2005

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 2005, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXES,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Require evidence of reasonable efforts to comply with all applicable requirements under title 14, Hawaii Revised Statutes, rather than actual compliance, to qualify for the Motion Picture, Digital Media, and Film Production Income Tax Credit; and

(2) Require taxpayers to be given notice of and an opportunity to cure any failure to meet the requirements for the Motion Picture, Digital Media, and Film Production Income Tax Credit.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; and Motion Picture Association. Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee has amended this measure by deleting language that would have required productions to provide evidence of reasonable efforts to comply with all applicable requirements under title 14, Hawaii Revised Statutes, to qualify for the Motion Picture, Digital Media, and Film Production Income Tax Credit.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2005, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2005, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

KYLE T. YAMASHITA, Chair