Report Title:

Digital Media; Tax Credit; Appropriation

Description:

Prohibits taxpayers from claiming the Motion Picture, Digital Media, and Film Production Tax Credit for qualified productions that are financed by investments for which a credit has been claimed under the High Technology Business Investment Tax Credit. Establishes an advisory group to study issues in hiring local talent for the film industry, with specific consideration for promoting local hiring.  (SB2273 HD1)

THE SENATE	S.B. NO.	2273
TWENTY-FOURTH LEGISLATURE, 2008		S.D. 2
STATE OF HAWAII		H.D. 1

A BILL FOR AN ACT

RELATING TO DIGITAL MEDIA.

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

     SECTION 1.  Section 235-17, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

     "(e)  Claims for credit under this section shall be subject to the following limitations:

(1)  On or after July 1, 2006, no qualified production cost that has been financed by investments for which a credit was claimed by any taxpayer pursuant to section 235-110.9 is eligible for credits under this section.

(2) Qualified production costs that are financed by public funds from the State shall not be eligible for credits under this section; and

(3) After June 30, 2008, no taxpayer shall be eligible to claim the tax credit under this section for qualified productions that are financed, in whole or in part, by investments for which a credit has been claimed by the taxpayer as a qualified high technology business under section 235-110.9.  If a claim for credit is made under this section after June 30, 2008, the taxpayer shall no longer qualify for the credit under section 235-110.9 and any credit that has been claimed under that section shall be subject to recapture under section 235-110.9(i)."

     SECTION 2.  (a)  The department of labor and industrial relations shall establish an advisory group consisting of members from the University of Hawaii, including the community colleges and the academy of creative media, the Hawaii film office, and trade unions, to conduct a study on the issues relating to the hiring practices of motion picture, digital media, and film productions in Hawaii; provided that the study include specific consideration of ways to promote local hiring.

     (b)  The advisory group shall submit a report on its findings and recommendations to the legislature no later than twenty days prior to the convening of the regular session of 2009.

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2008-2009 for expenses related to the study carried out by the advisory group in Section 2.

     The sum appropriated shall be expended by the department of labor and industrial relations for the purposes of this Act.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2025.