Hawaii Film Blog

Friday, July 28, 2006

Two Articles About Act 88 Today

Pacific Business News and the Honolulu Star-Bulletin each published an article today about Act 88, the new 15-20% refundable production tax credit. The PBN article had a good overview of how the credit works, and what it took to get it passed this year. The Star-Bulletin article focused on the state and county film commissioners trip to the AICP Show this week to promote the credit to producers of commercials. OK, so I now feel compelled to make a few corrections to this latter article (sorry Katherine):

"While Big Island commissioner Marilyn Killeri was busy [at the AICP Show in L.A.] circulating newly translated explanations of Senate Bill 88 in Japanese, state Film Commissioner Donne Dawson, Honolulu Film Commissioner Walea Constantinau, Benita Brazier of Maui County and Art Umezu of the County of Kauai networked and checked the placement of event napkins inscribed with '100 % Aloha; 15-20% off everything else.'"
>> Actually, Marilyn was not in L.A. this week because she's in Japan promoting the tax credit to Japanese commercial producers. Here's the Japanese translation of the tax credit overview that Marilyn was circulating in Japan (not L.A.).

"SB 88, which took effect July 1, offers a 15 percent rebate for shooting on Oahu and 20 percent for filming on a neighbor island -- up from just 4 percent statewide."
>> It's Act 88, not SB 88. When a bill is signed, it becomes an act, which then becomes a law. In this case, SB2570 (that's Senate Bill 2570) became Act 88, which will be incorporated into Hawaii Revised Statutes ยง235-17.

"Now the minimum expenditure requirement is $200,000 for commercials or feature films."
>> Also for television and digital media productions.

"From 1993 to 2000 the state garnered approximately $70 million from productions, $20 million of which came from commercials, said Constantinau."
>> Actually, from 1993 to 2000, the film industry (including film, TV, commercials, still photo shoots) pumped more than $654 million into Hawaii's economy. From 1993 to 2005, that figure rose to more than $1.2 billion. In its heyday, commercial production in Hawaii accounted for approximately 20% of total production expenditures, but that proportion has more than halved in recent years.

"Hawaii faces stiff competition from Canada, the United Kingdom and several mainland states that offer rebates in the 30- to 40-percent range."
>> Our biggest competition comes from Australia, Canada, and other U.S. states that offer rebates in the 20-30% range (Has anyone heard of a state offering 40%? Last I heard, Connecticut had the most generous credit at 30%).

Minor errors aside, the Star-Bulletin article does do a great job of highlighting how important it is to market the new tax incentive. It's one thing to have it on the books, but if no one knows about it, what good is it? The article quoted AICP prez Matt Miller as saying, "It's not good enough that (tax incentives) are in place. To find its full stride, Hawaii really has to be out there and marketed."--and marketed more than just on this stinky blog I made for free with Blogger. (That's a hint for all you people who control our marketing budget.)

Hawaii returns to movie spotlight [PBN, 7/28/06] (.pdf)
Isle film czars wave tax lure at Hollywood [Star-Bulletin, 7/28/06]

More Details on 15-20% Film Credit from Tax Dept.
It's Official: Hawaii Boasts 15-20% Film Tax Credit!
Legislature Passes 15-20% Film Tax Credit!
>> How a Bill Becomes a Law
>> Hawaii Film & TV Productions Goin' Down
Notable Commercials Shot in Hawaii
Big Island Film Commissioner at Yokohama Hawaii Festival
Hawaii at AICP Show
Meet the Hawaii Film Office!
Meet the County Film Offices
>> Press Massacres Hawaii's Film Tax Credits Again

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