Report Title:

Motion Picture and Film Production Equipment; Tax Credit

Description:

Provides a tax credit for the purchase of motion picture and film, and television production and post-production equipment.

THE SENATE

S.B. NO.

406

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to TAXATION.

 

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

SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235-   Motion picture and film equipment; tax credit. (a) There shall be allowed to each taxpayer subject to the tax imposed by this chapter, a credit deductible from the taxpayer's net income tax liability for qualified equipment costs.

To qualify for the credit, the taxpayer shall:

(1) Be a resident or domestic corporation;

(2) Have at least $10,000 in qualified equipment costs in the taxable year in which the credit is claimed; and

(3) Certify that the qualified equipment costs were for the purchase of equipment that remained in the State during the twelve consecutive months following the date the taxpayer took possession of the equipment.

(b) The amount of the credit shall be four per cent of the qualified equipment costs.

(c) If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of the tax credit may be used as a credit against the taxpayer's income tax liability in subsequent taxable years until exhausted.

(d) Every claim, including amended claims, for a tax credit under this section shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

(e) The director of taxation shall prepare any forms that may be necessary to claim a credit under this section. The director may also require the taxpayer to furnish information to ascertain the validity of the claims for credit made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91.

(f) As used in this section, "qualified equipment costs" means amounts paid for the purchase of equipment exclusively utilized for motion picture, film, and television production and post-production; provided that each piece of equipment had a minimum purchase price of at least $500."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2003; provided that section 1 of this Act shall apply to qualified equipment costs incurred during taxable years commencing after December 31, 2002.

INTRODUCED BY:

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