STAND. COM. REP. NO. 967-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1941

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Finance, to which was referred H.B. No. 1941, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to amend the requirements for productions to qualify for the Motion Picture, Digital Media, and Film Production Income Tax Credit to include:

(1) Completing at least fifteen percent of the production's principal photography within the same taxable year the production is qualifying for the film tax credit; and

(2) Completing or committing to complete fifteen percent of the production's post-production in the State within the same taxable year the production is qualifying for the film tax credit or later taxable years.

Your Committee received testimony in support of this measure from three individuals. Your Committee received testimony in opposition to this measure from the Hawaiʻi Film Alliance. Your Committee received comments on this measure from the Department of Taxation; Department of Business, Economic Development, and Tourism; Honolulu Film Office of the City and County of Honolulu; and Tax Foundation of Hawaii.

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. 1941, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

CHRIS TODD, Chair