Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 3021, S.D. 2, entitled:

begs leave to report as follows:

The purpose of this bill is to expand the tax credit for motion picture and film production to include a percentage of the costs of wages and salaries, capped at an unspecified percentage of the first $25,000 per employee, and to include commercials in motion picture and film production.

The Hawaii State AFL-CIO, Screen Actors Guild, a member of the Maui County Council, and a concerned individual testified in support of this measure. The Department of Business, Economic Development, and Tourism and Honolulu Film Office of the City and County of Honolulu supported the intent of this measure.

The Department of Taxation and the Department of Budget and Finance opposed this measure. The Tax Foundation of Hawaii submitted comments.

Your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3021, S.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3021, S.D. 2, H.D. 1.