HB 1982 Summary

• Requires persons paying loan-out companies claiming the motion picture, digital media, and film production income tax credit to withhold and remit taxes equal to the highest general excise tax rate plus applicable county surcharge, effective January 1, 2023.

• Increases the motion picture tax credit from 20-25% to 22-27% of qualified production costs depending on county population, and raises the per-production credit cap from $15,000,000 to $17,000,000.

• Reduces the minimum qualified production costs threshold from $200,000 to $100,000 and removes the requirement for certified public accountant verification reviews when applying for the tax credit.

• Extends the period for claiming excess tax credits through December 31, 2032 (previously 2025) and requires taxpayers to submit a 0.2% fee on claimed credits to the Hawaii film and creative industries development special fund.

• Appropriates $153,334 for two tax auditor positions in the Department of Taxation and $76,666 for one program specialist position in the Department of Business, Economic Development, and Tourism to administer the credit program.