HB2421, SD1 (Buy-Back Bill) Passed by MAT

This afternoon, the Senate MAT committee passed HB2421, HD2 (20% investment tax credit buy-back) as HB2421, SD1, with the following amendments: (1) Revert defective date of 2020 back to July 1, 2006, and (2) Replace provision calling for .5% contrib. to Hawaii Television & Film Development Fund with a requirement for the Tax Dept. to report the cost savings generated by the buy-back bill, and a blank dollar amount to be appropriated annually from this pot of cost savings into the Fund.

At the hearing, the Dept. of Taxation and the Dept. of Business, Economic Development, & Tourism noted their strong preference for the 15-20% production tax credit bill (SB2570, HD1) over this buy-back bill because of its relative administrative simplicity, its greater effectiveness in stimulating production, and its strong support from the local film industry (the leaders of the local industry gathered over 360 signatures of support from local crew members, producers, actors, and other production supporters).

The buy-back bill will now be punted over to the Senate WAM committee. The Senate version of the 15-20% production tax credit bill (SB2570, HD1) is awaiting a hearing by FIN. The House version (HB3080, HD1) has not been scheduled to be heard, but it's nearly identical to the Senate version.