Although it was a law designed to promote investment in high-technology businesses in Hawaii, Act 221 has become better known for being an economic boon to moviemakers who have taken advantage of the law's broad wording to reap substantial tax benefits. Lawmakers push fund
to promote high-tech
in isles
By B.J. Reyes
Associated PressWhile the state Tax Department deals with administrative aspects of the act, lawmakers say they believe Act 221 can be useful in diversifying the state's economy.
Yesterday, both House and Senate lawmakers approved measures that would allow the state to form a public-private partnership to promote Act 221 in an effort to attract high-tech businesses to Hawaii.
"Hawaii is still the only state that has a type of tax credit like this," said Senate Tourism Chairwoman Carol Fukunaga (D, Lower Makiki-Punchbowl). "We want to make sure that everybody who might be interested in coming and investing in Hawaii businesses and biotech companies, et cetera, actually has a way of learning about it."
The measure advanced by Fukunaga's committee provides $500,000 over two years to the Department of Business, Economic Development and Tourism to contract with a private company to market and promote incentives provided by Act 221.
A similar measure was advance by the full House and referred to the chamber's finance committee.
"Right now, what DBEDT has been doing, along with (High Technology Development Corp.), has been sort of sporadic," Fukunaga said. "If we put together a more focused strategic effort they can kind of survey the kinds of markets they really want to promote Act 221 in."
She added that the administration of who would qualify for the credits would be up to the Tax Department.
Act 221, passed by the 2001 Legislature, provides tax credits for investments in high tech businesses.
It was one of several tax measures criticized by the state Tax Review Commission in a report last month.