Tax credit proposal to boost Hawaii's filming industry

Reported by: Marisa Yamane
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Updated: 1/16 8:56 pm

The State is looking to bank on the success of the Hawaii-filmed and now Golden Globe winner "The Descendants."

But some say that could require an even bigger investment on the State's part, in the form of larger tax credits.

Lawmakers are working on crafting a bill that'll give movie and TV productions larger tax credits.

It'll be a little different from the film tax credit bill that didn't get passed last session.

No doubt Hawaii's lush scenery has served as a perfect backdrop for movies like "Jurassic Park."

Angela Tillson worked on "Jurassic Park," and has scouted locations on Kauai for more than 20 years.

"Studios are always looking for the best of everything in their movie but they still have to meet a budget line," said Angela Tillson, Location Manager.

Hawaii has lost many films and TV shows to other countries and states, where the movie studios can get more bang for their buck.

House Tourism Chair Tom Brower is planning to co-introduce a bill that'll boost tax credits for movie and TV productions shot in Hawaii.

"Nearly every state has a tax credit for a film production anywhere from 5%-35%, so I'm hoping we can increase our tax credit to be more competitive with the other states in the country," said Rep. Tom Brower, (D) Tourism Committee Chair.

Currently, the motion picture, digital media, and film production tax credit is 15% for money spent on Oahu, and 20% on the neighbor islands.

"I'd like to see it go to at least 25% maybe 30%," said Brower. 

"It would definitely help because I can guarantee we would have more productions coming here with that," said Tillson.

Movie studios can no longer get the "High Technology Business Investment" tax credit, also known as Act 221 because that expired a year ago.

A film tax bill stalled in committee last legislative session, but will be carried over to the next session.

"Last year it was a tax credit to build a studio, this year I would like to see that alive and also a credit to entice people to come here and film," said Brower.

Brower says the benefits of having more movies and TV shows filmed in our islands far outweigh the money that would be lost by increasing the film tax credit.

"We have such beautiful people and scenery that when the people see it they want to come here," said Brower.

So overall, the goal is to give the movie studios more incentives, so they'll spend their millions of dollars here in Hawaii.

The 2012 legislative session starts on Wednesday.

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Here are the most recent story comments.View All

musme - 1/17/2012 12:26 PM
0 Votes
The government takes a "risk" when they offer tax credits to the film industry. The last two comments are true, however, the risk vs. reward is a lot less for the HI tax payer then you actually think. We bank on the film industry to promote HI in the long run. But in the short run HI's tax payers suffer. Jurasic Park was the last "major" block buster that put HI on the map. Granted their were other films but in the end the film industry from Hollywood benefited because they "sold" all the extra HI state tax credits to other delinquent companies here in HI who bought those tax credits for a lot less then what these delinquent companies owed our state... HI tax payers have either been cracking even with the latest tax credits or even losing a lot more then just a few "stupid worthless" movies filmed here in the islands. Our government takes a chance with tax credits in the film industry... But we'd all like to think its for the better of this state in the long run. HI people love Vegas and love to take a chance... The film industry is probably worse then Vegas...

surfaz1 - 1/17/2012 11:46 AM
0 Votes
To those who say "no" to the tax credits don't understand film production. It's a wonderful thing for the state's people; a film provides hundreds, and in some cases up to a thousand local jobs. Further, the crew from out of state (actors, producers, etc) stay in hotels and eat out for months, adding a surge to our tourist industry. The local crew hired pays local income taxes so the state is not in a complete deficit like many seem to think. Further, sales tax and other taxes are paid while filming occurs from the crew. Not to mention the purchases that are locally made for the film (cars, wardrobe, stuff for the set). A film coming here provides jobs, boosts tourism companies, and gives business to local companies. It's an important thing that needs to happen here. All people hear is "tax credit" and they only imagine money going out; they fail to realize the amount of spending coming in and the opportunity provided to locals that wouldn't otherwise happen.

Jim Wiseman - 1/17/2012 9:34 AM
0 Votes
These tax breaks are desperately needed to attract production to Hawaii. We get it back many times over in LOCAL jobs, tourism promotion, etc. How many people do you think will see the Oscars this year and want to come to Hawaii (and spend money locally)? You can't pay for that kind of advertising. I speak as a 7 year former board member of FAVAH, Film and Video Association of Hawaii. Lingle did her best to take apart film incentives and the Film Office in Hawaii. Now maybe with "The Descendants" these policies can be reversed. These breaks mostly go to smaller productions that wouldn't even happen without them. The Big Hollywood stuff is seen all over the world and drops a LOT of money in the Islands (on which taxes are paid, GET, etc.) Thanks go to Angela Tillson for all she has done to bring production here to Hawaii, and especially Kauai. Congratulations, Angela!

nomakelidat - 1/17/2012 8:02 AM
0 Votes
No tax credits. If they want to come to the most beautiful place in the world to film, let them do it on their own. If they're unwilling to pay their fair share, let them go film elsewhere. In fact, for the privilege of filming here, they should pay extra.

incredulous - 1/16/2012 9:51 PM
0 Votes
What about the rest of the biz community? Tesoro is fleeing this state because it is too hostile to make a buck. Stupid lib/dems. You want WIC cards for all but who pays for it?

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