HI SB2741

Expands the motion picture, digital media, television, and film production income tax credit under HRS §235-17 to include animation or special and visual effects productions and short or long-form productions for internet distribution.

Maintains tax credit rates of 15% for counties with population over 700,000 and 20% for counties with population of 700,000 or less on qualified production costs, with a maximum credit of $8,000,000 per qualified production.

Requires qualified productions to have at least $200,000 in qualified production costs, provide state screen credit, demonstrate reasonable efforts to hire local talent, and contribute to local workforce development in partnership with labor organizations or educational institutions.

Adds new definitions including "animation or special and visual effects," clarifies "post-production" to exclude audio effects and in-camera effects, and expands "commercial" definition to include internet distribution.

Sets sunset date of January 1, 2020 for the tax credit provisions and requires the department of taxation to submit annual cost-benefit analysis reports to the legislature beginning in 2013.