HB2688 Summary

• Amends Section 235-17, Hawaii Revised Statutes to define "qualified post-production facility" as a film studio located in the State.

• Requires that at least 75 percent of post-production activities and services must be performed at qualified post-production facilities in Hawaii for costs to qualify as "qualified production costs" for tax purposes.

• Adds "digital media" to the definition of production methods, including digital cameras, sound equipment, and computers for creating cinematic imagery.

• Specifies that post-production costs (editing, visual effects, music, sound, graphics, animation) are only eligible if performed at qualified post-production facilities.

• Takes effect December 31, 2018 and applies to taxable years beginning after December 31, 2018.