Representative Jon Riki Karamatsu
House Floor Written Comments
House Bill 3080, House Draft 1
Tuesday, March 7, 2006
I rise in support.
This bill is a collaborative refinement by state and county film offices, industry and union representatives of a similar bill that stalled in conference during the 2005 legislative session. It offers significant, but reasonable incentives to stimulate the film and television industry, which experienced a $64 million drop in expenditures between 2004 and 2005.
The bill provides a tax credit amounting to 15 percent of qualified production costs incurred on Oahu, and 20 percent on Neighbor Islands, with a cap of $8 million per production. According to film industry officials, this would make Hawaii competitive with other jurisdictions.
The Department of Taxation submitted testimony in strong support of the measure, stating that the tax credit allows Hawaii to compete in the worldwide marketplace of filming locations and that it is budget neutral, meaning that the tax credit would not impact the state's current expenditures.
The success of “LOST” in winning the Emmy, Golden Globe, and Screen Actors Guild Awards has brought positive attention to the film industry in Hawaii. If we can seize the moment and compete with other localities around the world, we will generate revenue and create jobs for our community.
JON RIKI KARAMATSU 