Island by island
Hawaii sets the rate by county population. The statute says 22% in any county over 700,000 people, which is Oahu (the City and County of Honolulu), and 27% in counties of 700,000 or fewer, which covers Maui, Kauai, Hawaii Island, Molokai, and Lanai. A show that shoots on more than one island can prorate its costs by county.
Act 185 of 2026 added a 5% uplift for productions whose workforce is at least 80% local hires, on qualified costs incurred after December 31, 2025:
| Location | Base | With 80% local workforce |
|---|---|---|
| Oahu | 22% | 27% |
| Neighbor islands | 27% | 32% |
The credit is a refundable tax credit. The same act raised the per-production cap from $17 million to $20 million (waived for productions with $60 million or more of qualified costs), raised the statewide yearly cap from $50 million to $60 million, and pushed the end date to costs incurred before January 1, 2038.
Worked example: $1,000,000 feature on Kauai
A 20-day feature with most of the crew hired in Hawaii. Airfare from Los Angeles and shipping the camera package both count; E&O from a mainland insurer doesn't, because premiums paid to out-of-state insurers are excluded.
| Line | Amount |
|---|---|
| Total budget | $1,000,000 |
| Less: mainland post and legal | ($70,000) |
| Less: E&O paid to an out-of-state insurer | ($30,000) |
| Qualified Hawaii costs | $900,000 |
| Credit at 27% | $243,000 |
| Credit at 32% with 80% local hires | $288,000 |
| Less: 0.2% fee on credit claimed | ($576) |
The 80% threshold is counted on the workforce, so bringing a mainland DP, gaffer, and key grip into a 20-person workforce leaves you at 85% local. Bring two more and you're at 75% and the uplift, $45,000 here, is gone.
At $5,000,000 on Oahu
$4,600,000 of qualified costs earns $1,012,000 at 22%, or $1,242,000 at 27% with the local workforce uplift. Both are far below the $20,000,000 per-production cap. With a $60,000,000 statewide pool, the yearly limit matters more for series seasons than for single features. If the cap is reached, productions can claim from the following year.
Filing, step by step
- Register to do business in Hawaii and get a general excise tax (GET) license.
- File the Pre-Production Registration Form in the online portal at least 7 business days before the first Hawaii shoot date, with the script, estimated budget and credit, hiring plan, and workforce development plan. Select the uplift here if you want it. Under Act 188 of 2026, DBEDT publicly posts the production name and the representative's contact details after registration.
- If costs will exceed $1 million, authorize the film office to notify local unions (IATSE Local 665, Teamsters Local 996, SAG-AFTRA, and IBEW where applicable) of your start date.
- Upload the Start of Principal Photography letter within 30 days of the first shoot day.
- Withhold GET on payments to loan-out companies for Hawaii services.
- Within the first 90 days of the next calendar year, file the Hawaii Production Report with expenditures by category, above and below-the-line payroll, a hiring report, vendor and loan-out lists, and certification from an independent qualified CPA. Under Act 185, the CPA certification is required for every claim.
- Make the 0.1% workforce development contribution (a school or university donation, a union education program, or a film office workshop), pay the 0.2% fee on the credit claimed, and complete end credit verification.
- Claim the certified credit on the Hawaii return.
Where Hawaii claims get trimmed
The 80% test applies in each filing year, so a production that straddles New Year's has to meet it twice, with residency proof (Hawaii ID, a tax form, or a recent utility bill) for everyone counted. Out-of-state purchases only count if you pay the 4% use tax plus any county surcharge and can show you tried to buy locally. CPA firms not registered in Hawaii, banking fees, postage, and costs covered by grants don't count as qualified spend.
Compared with California and Alaska
California pays 35% but excludes producer, writer, director, and cast wages and ranks projects competitively. Hawaii's list of qualified costs includes cast wages. Alaska has no incentive at all. Run your budget through the incentive calculator, read how film tax credits work, and browse the incentives hub.