HI HB1373

Establishes a Workforce Development Incentive Rebate Program administered by the Department of Business, Economic Development, and Tourism beginning January 1, 2024, providing eligible employers a 50% rebate on Hawaii W-2 wages paid for film, television, commercial, and print projects, capped at $50,000 per employee per project and $1,000,000 per employer annually, with a total program cap of $2,500,000 per year.

Creates a new Film Studio Tax Credit allowing a 25% income tax credit for costs incurred to plan, design, and construct film studio infrastructure in Hawaii, with a cap of $25,000,000 in certified credits per year and applicability through December 31, 2032.

Amends the existing Motion Picture, Digital Media, and Film Production Income Tax Credit by restructuring tax credit percentages based on whether productions occur in designated enhanced film production zones (20-25% for non-zone areas, 20-30% for zone areas), separating resident and non-resident payroll expenditures, and adding reporting and audit requirements.

Increases the Motion Picture, Digital Media, and Film Production Income Tax Credit cap to $75,000,000 for calendar year 2024, then eliminates carryover of excess credits after December 31, 2024 (previously allowed through December 31, 2032).

Appropriates $80,184 annually for fiscal years 2023-2024 and 2024-2025 to fund one full-time program specialist position to manage the rebate programs and reporting requirements.