HI HB1939

Modifies Hawaii's motion picture, digital media, and film production income tax credit to provide an additional 5% credit for productions with at least 80% local hires, increasing to 82% by the third year and 85% by the fifth consecutive year claiming the credit.

Creates additional bonus credits of 3-5% for qualified productions that meet one of the following: at least 30% local above-the-line workforce, investment in production infrastructure, featuring indigenous content, or conducting in-state post-production.

Authorizes the Department of Business, Economic Development, and Tourism to waive the $17,000,000 per-production tax credit cap for one qualified production each taxable year, limited to no more than two years per production.

Requires all film productions claiming the tax credit to obtain independent third-party certification of qualified production costs starting January 1, 2027.

Mandates annual reporting by the Hawaii Film Office on tax credit recipients, benefits to local communities and workers, and analysis of the credit's economic impact compared to alternative uses of state funds; sunsets January 1, 2033.