Governor Josh Green announced plans to veto House Bill 796, which would have imposed a five-year sunset clause on all new or renewed income tax credits after 2025. The bill raised concerns across multiple industries, including renewable energy projects, affordable housing developments, and especially film, where uncertainty around long-term incentives could drive productions and potential jobs out of state. Green emphasized the need to preserve key incentives to sustain Hawaii’s economic momentum and growing national profile.
KITV reported:
House Bill 796 would have required that any income tax credit established or renewed after December 31, 2025, include a five-year sunset clause. After five years, the credits would either end or begin to phase out.
Supporters argued the measure would give lawmakers more oversight and ensure accountability over state spending.
“The intent of the bill was just for the legislature to have the opportunity to periodically review these [credits] to see if they are actually doing what they are intended to do,” said Rep. Kyle Yamashita (D, Pukalani), who introduced the bill.
Local union representatives said the bill would have jeopardized productions, especially long-term TV series that provide consistent employment to Hawaii crews.
The governor’s move offers reassurance to Hawaii’s film workers and studio partners looking to keep rolling on island productions. And with the global attention brought by major franchises like ‘Lilo & Stitch’ and ‘The White Lotus’, Hawaii’s role in the entertainment industry appears poised to grow, for now.
“We need to protect certain tax credits,” Green said. “And film is one of those.”
Though Hollywood projects draw the most attention, HB 796 would have impacted several other industries reliant on tax incentives, including renewable energy projects and affordable housing developments.
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