Entertainment tax bill signed
Gov. Linda Lingle yesterday signed Act 88, which revamps the state's entertainment-industry tax incentives, effective July 1.
That's when Hawai'i's 4 percent production tax credit will rise to 15 percent on O'ahu and 20 percent on Neighbor Islands. Credits available will be capped at $8 million per production. The increase in the production tax credit is not expected to cost the state more money. That's because the film industry's use of a 100 percent tax credit for investors would decline, according to state officials.
"We're ecstatic," said state Film Commissioner Donne Dawson. "This is an historic day for Hawai'i's film industry."
Hawai'i taxpayers affected by floods earlier this year are getting a break on their federal tax filing deadlines, a result of President Bush declaring the floods a major disaster.
Deadlines to file returns and pay taxes between Feb. 20 and July 2 are being postponed to July 3 for taxpayers in the disaster areas on O'ahu and Kaua'i, the Internal Revenue Service said in a statement.
The IRS said taxpayers need to identify themselves as victims by writing "Severe Storms — HI" in red ink at the top of tax forms they file.
The tax agency also said taxpayers in the disaster area can claim disaster-related losses for personal property not covered by insurance or other reimbursements. They need to refer to IRS Publication 547 to for details on claiming the loss.
U.S. WON'T SLAP CHINA OVER TRADE
WASHINGTON — The Bush administration yesterday said it would not brand China a country manipulating its currency for unfair trade advantages, provoking pro-tests from U.S. manufacturers.
The decision came in spite of congressional pressure to punish China in light of a U.S. trade deficit with China that set a record of $202 billion last year.