Report Title:

Tax Credits; Motion Pictures

RESOLUTION

WHEREAS, the State strongly supports and encourages the production of motion pictures and television projects in the islands; and

WHEREAS, the year 2000 was the most successful year in Hawaii's history for motion picture and television production with revenues totaling over $100,000,000; and

WHEREAS, Hawaii now competes on a worldwide basis for a share of the motion picture and television production business; and

WHEREAS, one of the most effective ways to compete for film and television projects is to offer financial or tax incentives; and

WHEREAS, in 1997, the Legislature passed a law providing tax credits for the motion picture industry; and

WHEREAS, the Department of Taxation proceeded to establish rules and criteria which applied to the motion picture tax credits; and

WHEREAS, the film industry has expressed a concern that the existing criteria may not be applicable to many productions and therefore is ineffective in serving as an incentive to create more production activity; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-first Legislature of the State of Hawaii, Regular Session of 2001, the Senate concurring, that the Legislature requests the Department of Taxation and the Department of Business, Economic Development, and Tourism, with the assistance and recommendations of the Hawaii Television and Film Development Board, to consider changes to the criteria for the motion picture and television tax credits; and

BE IT FURTHER RESOLVED that the departments are requested to consider the applicability of the tax credit criteria and the effectiveness of the tax credit in creating more production activity; and

BE IT FURTHER RESOLVED that the Department of Taxation and the Department of Business, Economic Development, and Tourism are requested to report their findings and recommendations to the Legislature no later than twenty days prior the convening of the Regular Session of 2002; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Governor; the Director of Taxation; the Director of Business, Economic Development, and Tourism; and the Chairperson of the Hawaii Television and Film Development Board.