Honolulu, Hawaii



RE:    S.B. No. 2273

       S.D. 2




Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii




     Your Committee on Ways and Means, to which was referred S.B. No. 2273, S.D. 1, entitled:




begs leave to report as follows:


     The purpose of this measure is to expand the income tax credit for motion picture and film production.


     Specifically, this measure authorizes an additional five per cent tax credit for qualified production costs in any county, provided that the qualified production meets certain requirements relating to the employment, wages, and training of Hawaii residents.


     Additionally, this measure authorizes the Department of Labor and Industrial Relations to implement and operate motion picture, digital media, and film production training programs.  This measure specifies that funds from the employment and training fund may be used to support the programs but that the Director of Labor and Industrial Relations may not require employers in general to make contributions to the fund for those programs.  Furthermore, this measure appropriates funds to the Department of Labor and Industrial Relations for development and implementation of training programs and the Department of Business, Economic Development, and Tourism for training approval and certification by the film industry branch.


     Your Committee received testimony in support of this measure from a concerned citizen.  Testimony in opposition to this measure was received from the Department of Business, Economic Development, and Tourism, the Department of Labor and Industrial Relations, and the Hawaii Film and Entertainment Board.  Comments on the measure were received from the Department of Taxation and the Tax Foundation of Hawaii.


     Your Committee finds that the additional tax credits created under this measure will promote the local growth of the motion picture and film production industry and increase and diversify employment opportunities for Hawaii residents.


     Your Committee has amended this measure by specifying use of the industry standard to calculate the employee's minimum base rate of $200 per day and making technical, nonsubstantive amendments for clarity and consistency.


     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2273, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2273, S.D. 2.


Respectfully submitted on behalf of the members of the Committee on Ways and Means,