SB 2580 — Signed Into Law

-Updated 7/6/2026

🎬 It's Official: Hawaiʻi's Film Tax Credit Is Now Law

Aloha HFA ʻOhana,

On July 6, 2026, Governor Josh Green signed SB 2580 into law — the most significant strengthening of Hawaiʻi’s film and television tax credit in over a decade.

This is a historic moment for our industry, and it happened because this community showed up in a way no one could ignore. Over 1,000 pages of testimony during the session, with close to none in opposition. Hundreds of you wrote testimony, attended hearings, walked the Capitol, and showed legislators that this industry matters to the people who live and work here.

For the first time in over ten years, our film tax credit has been meaningfully improved — and it’s now the law of the State of Hawaiʻi.

What the New Law Does

Tax Credit Rates — Base credit rates are set at 22% for Oʻahu (counties over 700,000 population) and 27% for Neighbor Islands (counties of 700,000 or less).

80% Local Hire Uplift — A 5% uplift is available to any production that meets the 80% local hire threshold, bringing the effective rates to 27% on Oʻahu and 32% on Neighbor Islands. This is the first time local hire language has been written into Hawaiʻi’s film incentive statute — something we fought for over a decade to achieve.

GET Exemption — The General Excise Tax exemption was included in the final bill. Film industry payroll companies will now be taxed similarly to other payroll companies for GET purposes.

Per-Production Cap Increase with $60M+ Exemption — The per-production cap is increased to $20 million. Productions spending over $60 million in qualified costs are exempt from the per-production cap entirely, ensuring Hawaiʻi can compete for the largest productions in the world.

Overall Annual Cap Increased to $60M — The annual program cap is raised from $50 million to $60 million.

Streaming Included — Streaming productions are now eligible for the tax credit, bringing the incentive in line with how content is made and distributed today.

Sunset Extended — The repeal date is pushed to January 1, 2038, giving the industry long-term certainty.

Retroactive Effective Date — The bill is effective retroactive to December 31, 2025, meaning productions already underway this year will benefit.

Third-Party CPA Audit Reinstated — The independent audit requirement is restored, adding accountability and transparency to the credit.

HB 1576 — Public Notice — Also passed and signed [status], this companion bill ensures the public is properly notified when productions begin work in Hawaiʻi.

Full bill text and legislative history: capitol.hawaii.gov – SB 2580

What Happens Next

The signature is the beginning, not the end. Implementation now moves to the Department of Business, Economic Development and Tourism (DBEDT) and the Department of Taxation, which will draft the administrative rules defining how key provisions — including the 80% local hire threshold and qualified expenses — are implemented. HFA’s SB 2580 Ad Hoc Committee is actively involved in shaping those rules to make sure they work for our people.

Updates will be posted here as implementation moves forward.

How This Happened

We started the year with over 30 bills in play. We mobilized over 1,000 pages of testimony. We held educational gatherings and Info Series sessions, generated news and print media coverage, built a website legislative dashboard, and ran newsletters and email blasts so our members understood the issues and had the tools to act. We met weekly since June of last year and spent countless hours on WhatsApp, on Zoom, and at the Capitol.

We got the GET exemption into law after it failed as a standalone bill. We got local hire language into statute after a decade of trying. We preserved the cap removal for large productions. And we did it together — 600+ crew, cast, producers, and vendors strong.

This is what happens when an industry stands up for itself.

Mahalo to Our Political Supporters

This bill did not happen by accident. It took heavy lifting by legislators, administration officials, and public servants who believed in our industry and fought for it through a difficult budget year. While many people helped along the way, the Hawaiʻi Film Alliance especially thanks:

  • Governor Josh Green — for his public support and personal presence at the bill’s passage out of conference
  • Senate President Ronald D. Kouchi — for his leadership moving the bill through the Senate
  • House Speaker Nadine Nakamura — for her leadership moving the bill through the House
  • House Majority Leader Sean Quinlan — for his engagement and support throughout the session
  • Jimmy Tokioka, Director, DBEDT — for his leadership and the administration’s commitment to growing Hawaiʻi’s creative economy
  • Georja Skinner, Creative Industries Division, DBEDT — for her tireless work supporting our industry and her continued partnership with HFA on implementation
  • Senator Lynn DeCoite, Chair, Senate EDT and Senate Conference Chair — a principal author and champion who shepherded SB 2580 from introduction through conference
  • Representative Greggor Ilagan, Chair, House EDT and House Conference Co-Chair — a principal author and champion who fought to get local hire language into statute
  • Senator Glenn Wakai, Senate Conference Co-Chair
  • Senator Carol Fukunaga, Senate Conference Member
  • Senator Kurt Fevella, Senate Conference Member
  • Representative Ikaika Hussey, House Conference Co-Chair
  • Representative Joe Gedeon, House Conference Member
  • Representative Adrian Tam, House Conference Member
  • Senator Donovan Dela Cruz, Chair, Senate Ways and Means — for advancing the bill through the Senate’s money committee
  • Representative Chris Todd, Chair, House Finance — whose critical support kept this bill alive through budget negotiations

Thank You to the Local Business Community

We also thank the local business community for standing with us all session — the vendors, production service companies, equipment houses, food and beverage suppliers, transportation providers, and small business owners, including members of the Chambers of Commerce across the Islands. Your support, your testimony, and your voice made a difference. This bill protects and grows the ecosystem that sustains all of us.

Grow the Voice

One year. 600+ members. Over 1,000 pages of testimony. A law that changes our industry. Imagine what we do at 1,000 members.

Every legislator who voted for SB 2580 counted our members. The bigger our alliance, the stronger our voice in the rules being written right now — and in every session to come. You know someone who works in this industry, supports it, or wants to see it grow. Send them this page. Tell them what we did. Bring them in.

Become a Member Today