Film producer Eric Hayes: tax enforcement and slow credits are choking Hawaii productions

Eric Hayes, an assistant director, producer and unit production manager who helped launch NCIS Hawaii, told The Big Picture podcast that sudden enforcement of a 4.71% payroll tax and slow state reimbursement of tax credits have made filming in Hawaii financially risky.

Hayes said productions had to absorb unexpected liabilities. "We had to come up with 1000000 dollars upfront" to cover the tax assessment on payroll for one project, he said, and added that the state’s enforcement often targeted local crew members rather than studios. He also described lenders' reluctance to finance projects when tax-credit reimbursements can take 18 to 36 months or longer, saying banks ask, "how are you gonna be paying us back after the 18 months?"

The conversation linked those enforcement and reimbursement problems to specific projects that were delayed or moved off-island. Hayes cited the example of Headhunters—his description tied the project's collapse in part to the payroll tax and cash-flow risk—and said studios and financiers now factor reimbursement timing and enforcement risk into their decisions about shooting in Hawaii.

Hayes framed the issue as part of a broader national challenge: production money chases credits, and states with reliable, timely incentives are favored. He called for clearer administration and more predictable reimbursement timelines so producers and lenders can underwrite projects with confidence.

The podcast concluded with Hayes urging a coordinated industry effort to restore sustainable production in Hawaii, while acknowledging that policy fixes must be accompanied by operational improvements to attract returning productions.