Bill Text: HI HB2168 | 2018 | Regular Session | Introduced

Hawaii House Bill 2168 (Prior Session Legislation)

Introduced

Bill Title: Relating To Film And Digital Media Industry Development.

Spectrum: Partisan Bill (Democrat 18-0)

Status: (Introduced - Dead) 2018-01-26 - Referred to EDB, FIN, referral sheet 8 [HB2168 Detail]

Download: Hawaii-2018-HB2168-Introduced.html

HOUSE OF REPRESENTATIVES	H.B. NO.	2168
TWENTY-NINTH LEGISLATURE, 2018
STATE OF HAWAII

A BILL FOR AN ACT

relating to film and digital media industry development.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Act 143, Session Laws of Hawaii 2017, section 2, is amended by amending subsection (a) of section 235-17, Hawaii Revised Statutes, to read as follows:

"(a) Any law to the contrary notwithstanding, there shall be allowed to each taxpayer subject to the taxes imposed by this chapter, an income tax credit that shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed. The amount of the credit shall be:

(1) Twenty per cent of the qualified production costs incurred by a qualified production in any county of the State with a population of over seven hundred thousand; [or]

(2) Twenty-five per cent of the qualified production costs incurred by a qualified production in any county of the State with a population of seven hundred thousand or less[.]; or

(3) Thirty-five per cent of the qualified production costs incurred by a qualified production in any county of the State with a population of seven hundred thousand or less; provided that:

(A) At least fifty-five per cent of the production's crew shall be hired from the county in which the qualified production costs are incurred; and

(B) This requirement shall not apply to hired individuals who principally add to the creative direction, process, voice, and narrative of the production, including the screenwriter, the producer, and on-camera, microphone, or voice-over talent.

A qualified production occurring in more than one county may prorate its expenditures based upon the amounts spent in each county, if the population bases differ enough to change the percentage of tax credit.

In the case of a partnership, S corporation, estate, or trust, the tax credit allowable is for qualified production costs incurred by the entity for the taxable year. The cost upon which the tax credit is computed shall be determined at the entity level. Distribution and share of credit shall be determined by rule.

If a deduction is taken under section 179 (with respect to election to expense depreciable business assets) of the Internal Revenue Code of 1986, as amended, no tax credit shall be allowed for those costs for which the deduction is taken.

The basis for eligible property for depreciation of accelerated cost recovery system purposes for state income taxes shall be reduced by the amount of credit allowable and claimed."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect on December 31, 2018.

INTRODUCED BY:	_____________________________

Report Title:

Film; Digital Media Industry; Tax Credit

Description:

Amends Act 143, Session Laws of Hawaii 2017, by providing an additional Motion Picture, Digital Media, and Film Production Tax Credit amount for qualified production costs in a county with a population of 700,000 or less, provided certain hiring criteria are met.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.