Written by new-contact on May 4, 2011. Posted in Incentive News

Plans to double Hawaii’s filming incentives deferred until 2012

Hawaii’s filming incentives will stay at 15% for at least the rest of 2011 after a proposal to expand the scheme stalled in State Legislature. Supporters were calling for an incentive increase to 40% on some of the islands.

Passing the bill would have meant Hawaii offered one of the most generous incentive packages in the US and the Governor had committed to signing it into law if it passed State Legislature. But the scheme has had vocal opponents too and has been deferred to the next legislative session, beginning in January 2012.

The scheme’s expansion was heavily backed by Relativity Media and Shangri-La Industries, which had pledged to spend USD400 million in the state on new studio facilities if the bill was passed.

In an editorial earlier this year, Hawaii’s Star Advertiser newspaper argued: “The proposal is based on the wishful theory that movie makers would arrive in droves, paying even more in taxes. That is a gamble the state should avoid; lawmakers should hold the line at tax generosities already offered.”

The scheme’s expansion was heavily backed by Relativity Media and Shangri-La Industries, which had pledged to spend USD400 million in the state on new studio facilities if the bill was passed. Former US President Bill Clinton - who has financial interests with both companies - lobbied on their behalf.

Hawaii hosted TV hit Lost throughout its run and the re-launch of Hawaii Five-0 looks set to replace it. The state has also recently hosted studio tent poles Pirates of the Caribbean: On Stranger Tides and Battleship under the existing 15% incentive scheme.