Hawaiʻi issued an estimated $24.5 million in film tax credits in 2024, according to a report to the state Legislature that looked at figures from last year.
The money will go to 28 productions that were filmed in Hawaiʻi last year, including, but not limited to, the live-action "Lilo & Stitch," "Temptation Island," "The Bachelorette," "Chief of War," and "The White Lotus."
However, those productions only generated about $20 million in tax revenue.
The report comes as film productions have decreased across the U.S. in the last two years due to screenwriter strikes and the rise of streaming services.
Film experts say the film and television industry can help boost local economies. States are also competing with each other, and other countries, to attract more film productions.
The state's film tax credit program is designed to draw motion picture productions to Hawaiʻi by offering a tax refund of 22% on Oʻahu and 27% on neighboring islands for productions to make television programs, movies and commercials.
But it's not as competitive as other states that have tax credits of 30% or more, according to Georja Skinner, chief officer of the state Department of Business, Economic Development and Tourism's Creative Industries Division.
"It is important to remain competitive because it is a bottom line game for studios and productions who are seeking to come here, whether independent or major," she said.
A push for higher tax incentives
In 1997, Hawaiʻi was one of the first states to create a film credit program. It started with a 4% income tax credit and a 6% transient accommodations credit. State lawmakers have raised the cap from then on, furthering adjustments to attract larger film productions.
The program has been praised by supporters for bringing film productions to the state and criticized by local economists for costing taxpayers money.
Last year, "NCIS Hawaiʻi" spent more than $51 million filming Season 3 before CBS canceled the show in May 2024. The production will claim a $11.2 million refund.
The dating show "Temptation Island" Season 6 spent more than $10 million and will claim a $2.7 million refund. "Lilo & Stitch" spent more than $15 million and will claim a $3.3 million refund.
Skinner said the productions may receive their tax credits by July, but added there have been backlogs in previous years.
"The state (tax office) is having its own challenges with hiring and we are glad to see that our tax office is fully staffed in their audit division now, and we anticipate that the process is going to be a little faster than it has been."
Entertainment industry professionals are supporting legislative measures to create a film authority and to raise the film tax incentives cap, which is currently $50 million for all productions seeking to film in Hawaiʻi. It's capped at $17 million per project.
The measure doesn't have a set cap increase, but Skinner advocates for a $10 million increase from the current $50 million cap.
Sen. Lynn DeCoite, who authored Senate Bill 732, said the film industry is struggling and "it's truly disappointing to see that few films are being made here."
"The industry also does marketing and branding through tourism but also creates job opportunities that offer more than just a livable wage for local residents," she said in a written statement. "Many businesses and occupations are directly linked to film producing, and supporting them would benefit the industry."
Last week, hundreds of film professionals rallied at the state Capitol to support raising the tax cap. Some held signs that read "Save the film industry."
Tuiaʻana Scanlan, president of the International Alliance of Theatrical Stage Employees Local 665, said the film industry supports thousands of local families.
"Thousands of local families get to prosper from it, along with the many local vendors that having local hires on the show will direct the purchases of that company towards local companies," he said. "So the expansion of the investment money is significant. I think a lot of folks get caught up in the glitz and glam of the industry and not how the real world effects are on local hires and local vendors."
A state report showed a more than $324 million economic impact. Skinner said that's due to a mix of productions applying for the film tax credit and those not applying.
"We have a lot of productions locally that do not participate in the tax credit program. Also, productions from offshore might be indie features or commercials or things of that nature," Skinner said. "But that all counts because they're all hiring people locally and getting film permits. The data itself comes from film permit logs from every county film office and our state film office."
The report also shows that $74.9 million of Hawaiʻi household income was generated from production expenditures paid to Hawaiʻi residents and businesses.
But with "NCIS Hawaiʻi" and other shows canceled in the last few years, film facilities have been left vacant.
Hawaiʻi has two state-owned film studios: Diamond Head and the Kalaeloa Navy warehouses on Oʻahu.
Eric Hays, producer and director of "NCIS Hawaiʻi," said there's also warehouse space in Kapolei.
"Those warehouses have holes in roofs, and you can't air condition them," he said. "You can do a movie out there. You can build sets out there. But it's not a studio per se because it doesn't have functioning offices, and it doesn't have air conditioning."
He added there's plenty of parking and space for production.
A seat at the table
Community members and watchdogs have raised questions about whether the state film office is doing enough to help the film industry.
Aubrey Lee Staley owns ALA Hawaiʻi, a Kanaka Maoli woman-owned talent agency representing actors and models. She said communication has fallen through the cracks in previous years. She tried calling and emailing the film office last March but didn't receive a response.
"I found that it's common for people to not get responses, including production out of state trying to call the film office."
Senate Bill 1641, introduced by Sen. Lynn DeCoite, would create a film authority within DBEDT to oversee the state film office. If the measure becomes law, it would create a 12-member panel of voting and non-voting members.
The director of DBEDT or a designee would serve as the board chair. Other members include representatives from the Office of Hawaiian Affairs, the Department of Education, the University of Hawaiʻi, the Department of Land and Natural Resources, a representative from the county film offices, members from the labor unions and a member selected by the Senate and House.
DeCoite said she introduced the measure to bring industry experts, stakeholders, and local talent to the table.
"This bill creates the Hawaiʻi Film Authority to streamline efforts, provide support, and ensure long-term growth. By setting up a special fund for film industry development, it strengthens the resources needed to make Hawaiʻi a top destination for film production," DeCoite said in an email.
"Ultimately, it's about giving local residents as well as the industry a seat at the table, fostering collaboration, and ensuring that the film industry plays a central role in the future of the industry," she continued.
Hays of "NCIS Hawaiʻi" underscored that lawmakers, union members, and all stakeholders must be on the same page.
"The authority is a good starting point," he said. "But my overall feeling is you need a film commission that oversees the film industry here where it's a one-stop shop to get answers about tax credits, about studios, about locations, and about crew."
