Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 1 - GENERAL PROVISIONS › Section 18-235-17-17 - Evidence of financial or in-kind contributions to educational or workforce development for the local film, television, and digital media industry

Current through June, 2024
(a) Section
				235-17(d)(6),
				HRS, requires that a production provide to the department of business, economic
				development, and tourism evidence of financial or in-kind contributions or
				educational or workforce development efforts, in partnership with related local
				industry labor organizations, educational institutions, or both, toward the
				furtherance of the local film, television, and digital media
				industries.
(b) Only one
				contribution is necessary to satisfy the requirement under section
				235-17(d)(6),
				HRS. However, a production may make multiple contributions to multiple
				qualified entities.
(c) Refundable
				contributions do not satisfy section
				235-17(d)(6),
				HRS. Any term allowing for refundability disqualifies a contribution from
				satisfying section
				235-17(d)(6),
				HRS, including refundability contingent only upon a production failing to
				qualify to claim the credit under section
				235-17,
				HRS.
(d) Contributions do not
				satisfy section 235- 17(d)(6), HRS, if a charitable deduction is taken for the
				contribution under section 170 of the Internal Revenue Code of 1986, as
				amended, or under conformity to such section.
(e) Contributions are not qualified
				production costs for purposes of claiming the tax credit under section
				235-17,
				HRS.
(f) The following
				contributions qualify for purposes of section
				235-17(d)(6),
				HRS:
(1) Financial contributions to state
				public or charter schools totaling at least 0.1 per cent of a production's
				qualified production costs or $1,000, whichever is higher. Financial
				contributions must be made in cash specifically to an arts or media program at
				a state public or charter elementary school, middle school, high school, or
				post-secondary school, preferably to a school in the same community in which
				the production takes place. Arts programs may include film, video, radio,
				performing arts, theater, music, and visual and fine arts;
(2) In-kind contributions to state public or
				charter schools totaling at least the equivalent value of 0.1 per cent of a
				production's qualified production costs or $1,000, whichever is higher.
				Contributions of in-kind property or services must be made specifically to an
				arts or media program at a state public or charter school, preferably in the
				same community in which production takes place. The in-kind contribution must
				include production-related property or services, such as cameras and sound
				equipment, editing/post-production equipment, grip/ electric equipment,
				computer hardware/software, props/set dressing, costumes, or other property or
				services previously agreed to by school administrators;
(3) Educational programs provided to state
				public or charter schools consisting of at least one on-set or post-production
				internship arrangement with a state public or charter high school or
				post-secondary school, preferably in the same community in which the production
				takes place. The internship must include a total of at least eight hours of
				arts or digital media education-related volunteer services, such as teaching
				acting classes, directing a school play, participating in animated student
				projects, or giving craft seminars. The internship may be arranged with any
				cast or crew. The minimum time requirement, at the discretion of the Hawaii
				film office, may be reduced based upon the value of services;
(4) Educational programs provided to local
				labor union chapters consisting of at least one on-set craft apprenticeship
				arranged with one of the local labor union chapters. The apprenticeship must
				include a total of at least eight hours of education-related volunteer
				services, such as giving a craft-related seminar. The apprenticeship may be
				arranged with any cast or crew. The minimum time requirement, at the discretion
				of the Hawaii film office, may be reduced based upon the value of services;
				and
(5) Any other financial or
				in-kind contributions or any other educational or workforce development
				approved by the Hawaii film office.