STAND. COM. REP. NO. 1999-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2580

S.D. 2

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 S.B. No. 2580, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE MOTION PICTURE, DIGITAL MEDIA, AND FILM PRODUCTION INCOME TAX CREDIT,"

begs leave to report as follows:

The purpose of this measure is to amend the Motion Picture, Digital Media, and Film Production Income Tax Credit (tax credit) by:

(1) Increasing the amount of the tax credit;

(2) Requiring each taxpayer claiming the tax credit to submit an independent third-party certification verifying certain information to the Department of Business, Economic Development, and Tourism;

(3) Excluding qualified productions that incur at least $60,000,000 of qualified production costs from the per-production cap amount of $17,000,000;

(4) Changing the aggregate cap amount to an unspecified amount;

(5) Defining "streaming platform" and amending the definition of "qualified production" to include certain streaming productions; and

(6) Extending the sunset date of the tax credit to January 1, 2038.

Your Committee received testimony in support of this measure from the Office of the Governor; Department of Business, Economic Development, and Tourism; Creative Industries Division of the Department of Business, Economic Development, and Tourism; Honolulu Film Office; Hawaiʻi Island Chamber of Commerce; Maui Chamber of Commerce; Kapolei Chamber of Commerce; Carrillo Digital Inc.; Association of Hawaiian Civic Clubs; Sight & Sounds Productions; Event Solutions; Hana Productions LLC; FX Group LLC; Hawaii Media Inc.; Mano Content LLC; ʻOhina Labs; Hyperspective Studios, Inc.; Retail Merchants of Hawaii; IATSE Local 665; Hawaii Teamsters Local 996; Tyler Young Films, LLC; Directors Guild of America, Inc.; SAG-AFTRA Hawaii Local; Hawaiʻi Film Alliance; Island Film Group; Happy Belly Eatery; and numerous individuals. Your Committee received comments on this measure from the Department of Taxation 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 S.B. No. 2580, S.D. 2, 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