Hawaii Expands Film Tax Credit and Establishes Central Marine Office: A Dual Boost to Creative Economy and Ocean Stewardship

On July 6, 2026, Governor Josh Green signed two landmark bills—one expanding the film tax credit to lure more productions, and another creating a centralized Office of Marine Affairs to streamline ocean policy. We explore how these twin moves could reshape Hawaiʻi’s creative and marine economies.

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1. A New Era for Hawaiʻi’s Film Industry

Senate Bill 2580, signed into law on July 6, 2026, overhauls Hawaiʻi’s Motion Picture, Digital Media, and Film Production Income Tax Credit. Beginning with costs incurred after December 31, 2025, the bill raises the per‑production cap from $17 million to $20 million, increases the annual aggregate cap to $60 million, and allows unused cap to roll over to the next year if the cap isn’t fully claimed . Critically, SB 2580 adds a 5% bonus credit for productions that employ at least 80% local hires, boosting the base credit from 22% to 27% on Oʻahu and from 27% to 32% on neighbor islands . The bill also exempts productions with over $60 million in qualified production costs from the per‑production cap entirely, encouraging large-scale projects to consider Hawaiʻi . Moreover, the legislation modernizes eligibility by including streaming platform productions and adds accountability by requiring independent third‑party certification of costs and local hiring for claims submitted to DBEDT . This suite of revisions provides long-term certainty by extending the sunset date of the credit program to January 1, 2038 .

2. Celebrating Local Culture and Industry Momentum

The signing ceremony drew attention beyond policymakers. Actor and filmmaker Jason Momoa made a cameo via video to celebrate the new law, highlighting industry enthusiasm for the expanded incentives . Senator Lynn DeCoite, who championed the bill, framed it as a jobs bill—one designed to grow local employment, stimulate infrastructure, and strengthen Hawaiʻi’s creative economy . Experts note that as global competition for film and streaming productions intensifies, states must offer competitive incentives to win projects. Hawaiʻi’s increase in financial caps, local-hire incentives, and inclusion of streaming productions reflect awareness of this industry shift . For local businesses—from catering to equipment rental—the law promises a new wave of opportunity tied to inbound productions.