PLACE: Princess Ruth Keelikolani Building
Room 310
830 Punchbowl Street
Honolulu, Hawaii 96813

RE: Proposed rules relating to the motion picture, digital media, and film production income tax credit

Pursuant to chapter 91, Hawaii Revised Statutes, the Director of Taxation of the State of Hawaii will hold a public hearing at the above-referenced time and place to allow the public to comment on the proposed adoption of rules relating to the motion picture, digital media, and film production income tax credit.

The proposed rules amend chapter 235, Hawaii Administrative Rules (HAR), by adding new sections 18-235-17-01 through 18-235-17-19, HAR. The proposed rules provide guidance for the administration of the motion picture, digital media, and film production income tax credit ("Film Credit"). The proposed rules create definitions, explain how taxpayers claiming the credit register with the Department of Business, Economic Development, and Tourism ("DBEDT") and provide DBEDT reports, clarify how the Film Credit’s aggregate cap shall be applied, clarify how credits shall be allocated and distributed, clarify what constitutes a qualified production and what qualifies as qualified productions costs for which the credit can be claimed, and also provide numerous examples.

All interested parties are invited to attend and present their views orally or in writing. Written statements may be submitted to the Rules Office at the Department of Taxation before or at the public hearing.

The proposed rules are available online at tax.hawaii.gov and ltgov.hawaii.gov, or by mail at no cost to any person who requests them. A copy of the proposed rules may also be picked up between 7:45 a.m. and 4:30 p.m., Monday through Friday, from the Rules Office at the Department of Taxation, Room 219, Princess Ruth Keelikolani Building, 830 Punchbowl Street, Honolulu, Hawaii and at the District Tax Offices located at 3060 Eiwa Street, #105, Lihue, Kauai; 54 S High Street, #208, Wailuku, Maui; and 75 Aupuni Street, #101, Hilo, Hawaii.