# Hawaii Film Tax Credit

Source: https://storiara.com/incentives/us/hawaii
Last updated: 2026-09-14
Author: Charles Hirschhorn, Storiara

> Hawaii's Motion Picture, Digital Media and Film Production Income Tax Credit is refundable: 22% of qualified production costs on Oahu and 27% on Maui, Kauai, Hawaii Island, Molokai, and Lanai. Under Act 185 of 2026, productions with at least 80% local hires get 5% more on costs incurred after December 31, 2025. The minimum is $100,000, credits are capped at $20 million per production and $60 million a year, and the credit runs through 2037.

## 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](https://storiara.com/glossary/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

1. Register to do business in Hawaii and get a general excise tax (GET) license.
2. 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.
3. 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.
4. Upload the Start of Principal Photography letter within 30 days of the first shoot day.
5. Withhold GET on payments to [loan-out companies](https://storiara.com/glossary/loan-out-company) for Hawaii services.
6. 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.
7. 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.
8. 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](https://storiara.com/glossary/qualified-spend).

## Compared with California and Alaska

[California](https://storiara.com/incentives/us/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](https://storiara.com/incentives/us/alaska) has no incentive at all. Run your budget through the [incentive calculator](https://storiara.com/tools/incentive-calculator), read [how film tax credits work](https://storiara.com/blog/how-film-tax-credits-work), and browse the [incentives hub](https://storiara.com/incentives).

## Frequently asked questions

### What is Hawaii's film tax credit rate in 2026?

22% of qualified costs on Oahu and 27% on the neighbor islands. Productions with at least 80% local hires add 5%, reaching 27% on Oahu and 32% on the neighbor islands, for costs incurred after December 31, 2025.

### Is there a cap on Hawaii's film tax credit?

Yes. Credits are limited to $20 million per qualified production, except that productions with at least $60 million of qualified costs have no per-production cap. The statewide limit is $60 million a year, and unused amounts roll into the next year's cap.

### Is Hawaii's film tax credit refundable?

Yes. The Hawaii Film Office describes it as a refundable production tax credit, so a production company gets the certified amount even if it owes little or no Hawaii income tax.

### When does Hawaii's film tax credit expire?

Act 185 of 2026 extended it to qualified production costs incurred before January 1, 2038.

## Sources

- [Hawaii Film Office: Incentives and Tax Credits](https://filmoffice.hawaii.gov/incentives-tax-credits/)
- [SB 2580 CD1 (Act 185, Session Laws of Hawaii 2026)](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB2580_CD1_.pdf)
- [Hawaii Department of Taxation: Tax Information Release No. 2026-03](https://files.hawaii.gov/tax/legal/tir/tir26-03.pdf)