Hawaii Film Tax Credits | Entertainment Tax Credits in Hawaii | Film Tax Credit in HI
Film Production Capital provides tax credit-based financing for films in Hawaii, as well as television, digital interactive media (video games), and all other qualifying entertainment productions. We are the largest purchaser/financier of entertainment tax credits in the country that specializes in independent productions. You can find some of the highlights involving Hawaii film tax credits below.
Hawaii Highlights:
• 15% of total qualified production costs incurred while filming on Oahu.
• 20% of total qualified production costs incurred while filming on a neighbor island.
• There is an $8 million credit cap per qualified production.
• 200K Minimum Spend.
• Refundable credit if it exceeds tax liability.
• Most spends subject to HI tax qualify including cost of shipping equip to and from HI as well as the cost of flights to and from HI. They also allow Per Diem.
• Must make reasonable efforts to hire local crew, also cash or in-kind donation to a qualifying education or vocational program (nominal).
• They do not have a formal mechanism for transferring the credits to another entity.
• Loan outs qualify if registered to do business in HI and subject to HI tax.
• Alternative HI 100% Program
• 100% non-refundable credit paid out over 5 years with front-loaded installments.
• Capped at 2 Million per investor per year.
• For HI-based company producing Audio files, video files, audio-video files, computer animation, and other entertainment products perceived by or through the operation of a computer; and Commercial television and film products for sale or license, and reuse or residual fee payments from these products.
• HI has started to more narrowly enforce the use of this section as it has been abused and is meant to establish longer-term productions, operations or series.
• In order to continue to get the payouts, company must meet either the activity test or the gross income test throughout the entire 5 year period.
• The activity test would likely be satisfied in the first year for the production, but after the production concludes, the company would have to have real income from film or television products sold, manufactured or produced in HI, or services originated in HI.
• They no longer accept accounting techniques to qualify as income in the subsequent 4 years, they are looking for something tangible.
• They are not transferable, so if the investor doesn't have any HI tax liability, they do allow formations of special purpose LLC's with HI taxpayers.
• If the investment is withdrawn or the qualifying activities cannot be sustained for all 5 years, then the investor cannot get any more credits and 10% of the credits claimed in the 2 preceding years become due.
If you are interested in obtaining more information about our services in Hawaii, or any other state, please call us at 1-866-454-9205 or email us at info@filmproductioncapital.com.
Hawaii Film Office: www.hawaiifilmoffice.com
Incentives Information Page: http://www.hawaiifilmoffice.com/incentives-tax-credits
