STAND. COM. REP. NO.  948-16

Honolulu, Hawaii

                , 2016

RE:   H.B. No. 2088

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2088 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 provide stability and economic incentive predictability for Hawaii's film industry by extending the Motion Picture, Digital Media, and Film Production Income Tax Credit for an additional five years.

The Department of Business, Economic Development, and Tourism; SAG-AFTRA Hawaii Local, I.A.T.S.E. Local 665; American Federation of Musicians' Local 677; Hawaii Teamsters & Allied Workers Local 996; NBC Universal Media, LLC; CBS Corporation; and a concerned individual supported this measure.  The Department of Taxation and Tax Foundation of Hawaii provided comments.

     Your Committee has amended this measure by:

     (1)  Changing the sunset date of the Motion Picture, Digital Media, and Film Production Income Tax Credit to an unspecified year;

     (2)  Changing its effective date to July 1, 2030, to encourage further discussion; and

     (3)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     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. 2088, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2088, H.D. 1.

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

____________________________

SYLVIA LUKE, Chair