STAND. COM. REP. NO.329-02
Honolulu, Hawaii
, 2002
RE: H.B. No. 2803
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Sir:
Your Committee on Economic Development and Business Concerns, to which was referred H.B. No. 2803 entitled:
"A BILL FOR AN ACT RELATING TO MOTION PICTURE AND FILM PRODUCTION,"
begs leave to report as follows:
The purpose of this bill is to support motion picture and television film production in the State by:
(1) Providing that the current film tax credit of 4 per cent apply to total costs incurred during film production;
(2) Establishing an additional 22 per cent tax credit on the costs of wages and salaries incurred during film production;
(3) Repealing the authority of the Director of Taxation to specify a schedule of allowable tax credits; and
(4) Establishing a schedule of minimum production costs required to qualify for the tax credits.
Testimony in support of this measure was submitted by the Big Island Film Office, the Chairman of the Hawaii International Film Festival Development Committee, and a concerned citizen. The Department of Business, Economic Development, and Tourism, Hawaii Media Inc., and the Film Industry Development Coordinator for the City & County of Honolulu supported the intent of this measure. The Department of Budget and Finance opposed this measure. The Department of Taxation and the Tax Foundation of Hawaii offered comments.
Your Committee has amended this measure by:
(1) Eliminating the double tax credit by making the 4 percent tax credit applicable to all costs except wages and salaries;
(2) Reinstating the authority of the Director of Taxation to specify a schedule of allowable tax credits;
(3) Limiting the tax credit to $25,000 for each taxpayer;
(4) Repealing the schedule of minimum production costs required to qualify for tax credits;
(5) Making production costs of commercials eligible for the tax credit;
(6) Defining "commercials"; and
(7) Making technical, nonsubstantive amendments for purposes of style and clarity.
As affirmed by the record of votes of the members of your Committee on Economic Development and Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2803, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2803, H.D. 1, and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Economic Development and Business Concerns,
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____________________________ LEI AHU ISA, Chair |