Hawaii Film Blog

Monday, March 06, 2006

Read His Lips: No New Tax Credits!

Tax incentive opponent No. 1 Lowell Kalapa published a commentary in the Hawaii Reporter today that argues against the proposed 15-20% film/TV production tax credit currently before the legislature. Kalapa, president of the Tax Foundation of Hawaii, a private, non-profit educational organization, has been the only person over the past few years (yes, several iterations of this proposed credit have been before the legislature before) who has come out publicly and on record against the proposed credit.

In his commentary, Kalapa questions the give-back Hawaii residents will get from producers who take advantage of the credit. I should note that there is a provision in the current proposed bills (HB3080, HD1 and SB2570, SD2) before the legislature that requires production companies wanting to claim the credit to contribute (monetarily or in kind) towards education and workforce development in Hawaii. Also, Kalapa says that "["Lost"] has been successful without any state subsidy." Although I disagree with his word choice (the word "subsidy" is loaded), it has been reported in the press that "Lost" actually has partaken of Hawaii's tax incentives--namely, our investment tax credit or "Act 221." You can read more about that here and here.

>> Entertainment Industry Big Winner With Proposed Hawaii Legislation [Hawaii Reporter, 3/6/06]

Tax Incentives Suck...Who Said That?
Act 221 = $108M So Far
Why Film Tax Incentives?
Everyone Else Is Doing It...
Film Incentives That Aren't Tax Credits

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