HB 1373 Summary

• Establishes a Workforce Development Incentive Rebate Program administered by the Department of Business, Economic Development, and Tourism providing a 50% rebate on Hawaii W-2 wages for local independent film and television productions, capped at $50,000 per employee per project and $1,000,000 total per employer, with $2,500,000 available annually.

• Creates a new Film Studio Tax Credit providing a 25% income tax credit for costs incurred to plan, design, and construct film studio infrastructure, applicable through December 31, 2032, with an annual cap of $25,000,000 in certified credits.

• Restructures the existing Motion Picture, Digital Media, and Film Production Income Tax Credit to differentiate between resident and nonresident payroll (20-30% credit depending on resident status and zone location), increases the tax credit cap to $75,000,000 for 2024 only, and eliminates carryforward of excess credits after December 31, 2024.

• Requires productions claiming tax credits to submit detailed documentation, undergo unannounced on-site audits, provide hiring verification, and comply with union notification requirements; non-compliance results in forfeiture of credits.

• Appropriates $80,184 for fiscal years 2023-2024 and 2024-2025 to fund one full-time Program Specialist VI position to manage the new programs and reporting requirements.