HI HB1498

Increases the film and media production income tax credit by an additional 5% for productions that utilize qualified production facilities located within the State, bringing potential credits to 27% (Oahu) or 32% (neighbor islands)

Defines "qualified production facility" as a facility on at least 10 acres of government-leased land, constructed after December 31, 2024, costing at least $100 million to design and build, with sound stages, offices, and related production infrastructure

Reclassifies film, television, and digital media production as "manufacturing" for general excise tax purposes, reducing the applicable rate from 4% to 0.5%

Exempts from general excise tax amounts received by motion picture project employers for employee wages, salaries, payroll taxes, insurance premiums, benefits, and payments to loan-out companies

Leaves the per-production tax credit cap (currently $17 million) and annual aggregate cap (currently $50 million) as unspecified amounts to be determined, with excess credits allowed to roll over until December 31, 2032