“Hawaii Five-0,” “Magnum P.I.,” “Jurassic Park,” “Jumanji” and scores of other blockbuster programs and films were made right here in the islands, thanks in large part to tax credits and incentives provided by the state of Hawaii.
Unfortunately, productions like these may soon leave the islands or bypass us altogether if Gov. David Ige follows through with his intention to veto a proposed increase to the film tax credit cap.
Our local film and television industry is vital to the islands. In 2018 alone, the industry had an overall economic impact of $825 million according to the Department of Business, Economic Development and Tourism (DBEDT). The state’s incentive program helps generate 4,200 direct motion picture and television jobs while supporting more than 390 local production companies and industry businesses. In addition, you would be surprised to learn that educational institutions and hundreds of students statewide have benefited through workforce development opportunities supported by the tax credit.
But it’s not just about numbers. It should also be noted that film and television provide an opportunity to share the natural beauty and culture of Hawaii with the entire world. Furthermore, this industry fosters creative arts in our community and allows locals to utilize our skills and talents right here at home.
States across the country have established generous film and television incentive programs because they recognize the importance of the economic opportunities and high-paying jobs this industry provides. A prime example is Georgia, which offers a 20% to 30% tax credit on production expenses. This has translated into 455 production projects with $9.5 billion in economic impact for their state in 2018. That’s a 4,000% increase in economic activity from the industry since 2007 when its tax credit program was expanded from 9% to 30%.
In Hawaii, Senate Bill 33 would expand our film tax credit cap from $35 million to $50 million for all productions in a given year through 2025. While it’s not the most generous incentive among states, this increase will at least help to keep Hawaii competitive with other locations for lucrative film projects.
Some have suggested the governor might veto this important measure because of concerns regarding a provision in the bill that requires the University of Hawaii-West Oahu to transfer land for a new film studio to the Hawaii Technology Development Corp. (HTDC). If true, such interagency politics should not overshadow the need for a competitive tax credit program that keeps our industry afloat.
The substantial benefits of this industry will be at risk if the governor vetoes SB 33. Without a more generous tax credit, productions will choose to go elsewhere with more attractive incentives and Hawaii would stand to lose hundreds of millions in economic activity and thousands of jobs.
Please urge the governor to let SB 33 pass into law. Enactment of this bill will create stability and predictability for producers already filming in the islands while paving the way for potential new TV, streaming series and feature films.
We must continue to ensure that motion picture and television production in Hawaii is predictable, sustainable and robust. Absent the tax credit increase proposed in SB 33, these productions and thousands of related jobs and businesses would fade to black.
Irish Barber is the business representative for I.A.T.S.E., Local 665, the union representing technicians and artisans for film, stage projections and trade shows in Hawaii.