STAND. COM. REP. NO.  658

Honolulu, Hawaii

                , 2013

RE:   H.B. No. 726

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 726, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO FILM AND DIGITAL MEDIA INDUSTRY DEVELOPMENT,"

begs leave to report as follows:

The purpose of this measure is to encourage new film, television, entertainment, digital media, and music video production in Hawaii by:

     (1)  Extending the expiration date of the motion picture, digital media, and film production income tax credit to January 1, 2023;

     (2)  Increasing the motion picture, digital media, and film production tax credit ceiling for each qualified production to an unspecified amount; and

     (3)  Increasing, by an unspecified amount, the percentage of qualified production costs that may be claimed as a credit, in counties with a population both above or below 700,000 persons.

The Mayor of Maui County provided testimony in support of this measure.  The Department of Taxation; Department of Business, Economic Development, and Tourism; SAG-AFTRA, International Alliance of Theatrical State Employees Mixed Local 665, American Federation of Musicians Local 677, and Hawaii Teamsters Local 996; NBC Universal Media, LLC; and Tax Foundation of Hawaii provided comments on this measure.

     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 H.B. No. 726, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair