Can Hawaiʻi's legislature save our film industry?

Yahoo

02-04-2025

HONOLULU (KHON2) — Hawaiʻi's economy heavily relies on tourism, but this makes it vulnerable to changes in travel safety perceptions.
In recent months, other countries have issued travel warnings to the United States, and this could hurt Hawaiʻi's tourism industry.
To address this, community leaders in Hawaiʻi have long been working to diversify our economy, and one way they're doing this is by strengthening its film industry.
Since the late 1990s, Hawaiʻi has used tax incentives to attract film and television productions. Local attorney Bill Meyer was a key player in securing work shoot the hit TV series LOST in Hawaiʻi.
'We worked really hard to get the show brought to Hawaiʻi, and it paid off,' said Meyer. 'Not only does the film industry bring millions of dollars in revenue to the state each year, but tourism also gains a big leg up with a lot of visitors coming to the Hawaiʻi because of their exposure to Hawaiʻi in a series or a film.'
These incentives were designed to make Hawaiʻi an appealing location for filmmakers by offering them a break on taxes.
In 1997, Hawaiʻi introduced its first film tax credit, which offered a 4% tax credit on production costs. The program grew over time.
By 2006, the tax credit was raised to 15% for filming on Oahu and 20% for other islands. The tax credit was further boosted in 2013, which helped bring even bigger productions to Hawaiʻi.
A key part of the legislation, called the Motion Picture, Digital Media, and Film Production Income Tax Credit, has been adjusted over the years to keep Hawaiʻi competitive.
For example, in 2023, the tax credit was increased to 22% for Oahu and 27% for the Neighbor Islands. The state also set caps on how much money could be claimed, which ensures that the program remains effective without overburdening the state budget.For example, Hawaiʻi set a cap of $50 million per year for the entire program starting in 2023.
These tax incentives have paid off. In 2022, Hawaiʻi's film industry contributed around $577 million to the state's economy.
This included money spent by production companies on everything from hiring local crew members to purchasing materials.
For this large investment in our economy, the state only provided $74.5 million in tax credits. That means the film industry received a financial boost to encourage continued filming in the state.
A new bill is circulating through the Hawaiʻi State Senate, .
James Kunane Tokioka, Director of the Department of Business, Economic Development and Tourism, pointed out these four important facts when it comes to tax incentives for the film industry in Hawaiʻi.
1. On the industry's economic impact:
'Hawaiʻi's film industry has consistently demonstrated its ability to generate significant economic benefits for the state, supporting thousands of jobs and injecting hundreds of millions of dollars into the local economy.'
2. On tax incentives for the film industry:
'The proposed amendments to the Motion Picture, Digital Media, and Film Production Tax Credit seek to enhance Hawaiʻi's competitiveness by attracting more high-budget productions while ensuring greater economic returns for the state.'
3. On workforce development:
'By expanding workforce training provisions and increasing local hiring incentives, this bill aims to cultivate a sustainable and thriving film industry that provides long-term career opportunities for Hawaiʻi residents.'
4. On tourism and cultural representation:
'The visibility of Hawaiʻi in major film and television productions not only boosts tourism but also allows for authentic storytelling that reflects the rich cultural heritage of the islands.'
You can click to access information on SB32 and to read Tokioka's full statement.
With more countries issuing travel warnings and tourism potentially declining, these legislative efforts help ensure Hawaiʻi has another way to create jobs and support its economy.
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By growing the film industry, Hawaiʻi can reduce its dependence on tourism while building a more sustainable future.
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