Hawaii Expands Film Tax Credit and Creates Central Marine Office as Gov. Green Signs Two Key Bills

On July 6, 2026, Governor Josh Green signed two pivotal pieces of legislation that will reshape Hawaii’s creative economy and its stewardship of marine resources.

Senate Bill 2580, now Act 185, modernizes the state’s film tax credit program. Starting with production costs incurred after December 31, 2025, projects that employ at least 80 % local workers qualify for an additional 5 % credit. The per‑production cap rises to $20 million, while productions with $60 million or more in qualified costs are exempt from that limit. An aggregate annual cap of $60 million is set, and any unused portion may carry over to increase the following year’s cap. The credit’s sunset date extends to January 1, 2038.

The bill also broadens the definition of a “qualified production” to encompass certain streaming projects and clarifies what constitutes a “streaming platform.” It removes the general excise tax reimbursements that motion‑picture employers receive from client companies for reasonable employment‑related costs incurred by project workers or loan‑out companies.

Governor Green emphasized that the measures “demonstrate the future of Hawai‘i, helping to diversify our local economy, protect our environment and put our people on an international stage.” Senate Chair Lynn DeCoite, who led the committee that drafted the bill, said the legislation “creates local jobs and stimulates economic growth” by attracting filmmakers to the islands. House Chair Greggor Ilagan added that the bill “strengthens an industry that invests directly in our communities and our workforce.” Actor‑filmmaker Jason Momoa praised the law, noting it gives Hawai‘i “the opportunity to tell them here at home” and is “an investment in Hawai‘i’s future, our creative community and the next generation of storytellers.”

The film tax credit program has existed since Act 107 in 1997 and was most recently revised by Act 217 in 2022, which raised base credits, lowered minimum spending requirements, and introduced a per‑project cap. SB 2580 builds on those changes and adds new incentives for local hiring, long‑term productions, and streaming services.

Senate Bill 2907, now Act 186, creates the Office of Marine Affairs within the Hawaii Technology Development Corporation (HTDC). The law establishes a Marine Affairs Governing Board and a Marine Affairs Coordinator position, designates Hawaii as an ocean cluster, and centralizes marine‑related policy and coordination. Governor Green said the ocean is “at the heart of Hawai‘i’s identity” and that the new office will help protect marine health while supporting economic growth.

Representative Kirstin Kahaloa, a Native Hawaiian legislator, said the bill “strengthens Hawai‘i’s blue economy by bringing together government, industry, research and Native Hawaiian knowledge to create good local jobs while protecting the ocean that sustains us.” The new office will consolidate expertise, resources and strategic planning under a single entity, allowing the state to focus on innovation and partnership in ocean‑related industries.

The full list of bills signed that day included additional measures on enterprise zones, economic development, film production, food innovation and more, but the film tax credit and marine office received the most attention.

At the time of signing, the state had no announced next steps beyond implementing the new credit rules and establishing the marine office. The laws will take effect as specified in the bills, with the film credit changes applying to costs incurred after the stated dates.

The legislation reflects Hawaii’s ongoing effort to diversify its economy beyond tourism and defense, positioning the islands as a competitive location for film and television production while protecting its marine resources.