H.B. 645 Summary

• Amends Section 235-17, Hawaii Revised Statutes, to expand the motion picture, digital media, and film production income tax credit by including post-production activities and services as qualified production costs.

• Redefines "commercial" to include advertising messages with Internet-only distribution, expanding the types of productions eligible for the tax credit.

• Adds new definition of "qualified post-production facility" as a facility in Hawaii handling all aspects or specialized aspects of post-production work, whether standalone or located on a film studio site.

• Limits post-production costs to only those performed and located in Hawaii at qualified post-production facilities, with authority for the Department of Taxation to adopt rules establishing additional criteria for qualifying facilities.

• Effective date of July 1, 2112, applies to taxable years beginning after December 31, 2019.