2026 Legislative Session Completed

Subject: WE DID IT — SB 2580 Passes the Floor

Aloha HFA ‘Ohana,

Today, SB 2580 passed the full floor vote in both chambers of the Hawai’i State Legislature. The bill now goes to Governor Josh Green for signature — and the Governor has been publicly supportive, including attending the bill’s passage out of conference in person.

This is a historic moment for our industry.

For the first time in over a decade, Hawai’i’s film tax credit has been meaningfully strengthened – and it happened because this community showed up in a way that no one could ignore. 280 pages of testimony on the final FIN hearing alone. Hundreds of you writing letters, calling offices, and showing legislators that this industry matters to the people who live and work here.

Here is what is in the final version of SB 2580:

Tax Credit Rates The base credit rates are set at 22% for O’ahu (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 O’ahu and 32% on Neighbor Islands. This is the first time local hire language has been written into Hawai’i’s film incentive statute. We have been fighting for this for ten years.

GET Exemption The General Excise Tax exemption was included in the bill during final negotiations. Film industry payroll companies will now be taxed similar to other payroll companies for purposes of G.E.T.

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

Overall Annual Cap Increased to $60M The annual program cap has been increased from $50 million to $60 million.

Streaming Included: Streaming productions are now eligible for the tax credit. This brings the incentive in line with how content is actually being made and distributed today.

Sunset Extended: The repeal date has been 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 has been restored, adding accountability and transparency to the credit.

HB 1576 — Public Notice: also passed the floor today and is headed to the Governor. This bill ensures that the public is properly notified when productions begin work in Hawai’i.

What Happens Next

The bill goes to the Governor for signature. All signals are positive. Once signed, the Department of Business, Economic Development and Tourism (DBEDT) will begin drafting the administrative rules that define how key provisions — including the 80% local hire threshold — are implemented. HFA intends to be actively involved in shaping those rules to make sure they work for our people.

We are also planning a celebration. More details soon — you’ve earned it.

Mahalo to Our Political Supporters

This bill did not happen by accident. It took very heavy lifting by our legislators, administration officials, and public servants who believed in our industry and fought for it through an incredibly difficult budget year. Although we know there are many people who helped along the way, the Hawai’i Film Alliance would like to thank the following individuals for their support and leadership:

• 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 in moving the bill through the Senate

• House Speaker Nadine Nakamura — for her leadership in moving the bill through the House

• House Majority Leader Sean Quinlan – for his engagement and support throughout the session

• Jimmy Tokioka, Director, Department of Business, Economic Development and Tourism (DBEDT) – for his leadership and the administration’s commitment to growing Hawai’i’s creative economy

• Georja Skinner, Creative Industries Division, DBEDT – for her tireless work supporting Hawai’i’s film industry and her continued partnership with HFA on implementation

• Senator Lynn DeCoite, Chair, Senate Committee on Economic Development and Tourism and Senate Chair, Conference Committee – a principal author and champion of SB 2580 who shepherded this bill from introduction through conference

• Representative Greggor Ilagan, Chair, House Committee on Economic Development and Technology and House Co-Chair, Conference Committee – a principal author and champion of HFA’s legislative priorities who fought to get local hire language into statute

• Senator Glenn Wakai, Senate Co-Chair, Conference Committee

• Senator Carol Fukunaga, Senate Member, Conference Committee

• Senator Kurt Fevella, Senate Member, Conference Committee

• Representative Ikaika Hussey, House Co-Chair, Conference Committee

• Representative Joe Gedeon, House Member, Conference Committee

• Representative Adrian Tam, House Member, Conference Committee

• Senator Donovan Dela Cruz, Chair, Senate Committee on Ways and Means – for supporting and advancing the bill through the Senate’s money committee

• Representative Chris Todd, Chair, House Committee on Finance – whose critical support in the money committee kept this bill alive through the budget negotiations

Thank You to the Local Business Community

We also want to thank the local business community for standing with us throughout this session. The vendors, production service companies, equipment houses, food and beverage suppliers, transportation providers, and small businesses owners, including members of the Chambers of Commerce across the Islands – you all make up the backbone of our industry. Your support, your testimony, and your voice made a difference. This bill protects and grows the ecosystem that sustains all of us.

Thank You

We started this year with over 30 bills in play. We mobilized hundreds of pages of testimony. We implemented educational gatherings, Info Series sessions, news and print media stories, a website legislative dashboard, newsletter and email blasts to make sure 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.

Two bills survived and are headed to the Governor. 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.

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

Mahalo nui loa to every single one of you who showed up this session. We have more work ahead – administrative rules, next session’s priorities, and building on what we’ve won. But today, we celebrate.

Hawai’i Film Alliance