Hawai'i needs to offer incentives to grow its film and TV production industry. However, the state should consider targeting tax breaks to generate more specific results, said Chris Lee, founder of the University of Hawai'i's Academy for Creative Media.

The state hands out millions of dollars in tax credits to encourage production companies to film in Hawai'i. Those credits in turn help generate jobs and millions of dollars in spending. However, the economic benefits of the tax breaks aren't always obvious. That's particularly true when it comes to productions that create temporary jobs such as "The Big Bounce," and before it "Blue Crush," which are estimated to have cost the state $30 million to $36 million in foregone revenues over a five-year period.

"I totally understand why people say, 'What did we get out of "Big Bounce"? What did we get out of "Blue Crush"?' " said Lee, following a film industry briefing at the Capitol yesterday. "That's the unfortunate side of it because perspectives are important."

However, "It's not the generosity of the credits, it's what you get out of it."

INCREASED CREDIT

Lee and other entertainment industry representatives spent about two hours yesterday talking to lawmakers about recent developments and ways to spur economic growth. Last year the Legislature increased Hawai'i's 4 percent production tax credit to 15 percent on O'ahu and 20 percent on the Neighbor Islands. The amount of credits available is capped at $8 million per production.

Hawai'i needs such incentives to remain competitive with a growing number of states that are looking to attract productions, said Lee, who was executive producer for "Superman Returns."

"Incentives are important," he said. "There isn't anywhere that doesn't offer some type of incentive."

However, the state could further target such incentives by requiring production companies to do more than create jobs, Lee said.

"You can say, 'If you want the money you can do this,' " he said. "Hawai'i will have to decide, all right, what areas do we want to be improved on. We don't have private sound stages, so maybe we want to say we want sound stages, or maybe we want to support this film school.

"Maybe we say we want to see real workforce development."

COMPETING STATES

Tangible results from tax breaks would result in more public support. States such as New Mexico and Louisiana also provide tax breaks, Lee said.

"The difference is everybody in that state feels they got something out of it," he said. "They can look at that new $200 million studio and say, 'Oh, OK, we got that.' "

Jerry Chang, D-2nd (S. Hilo), said lawmakers might consider creating more targeted tax breaks. However, the state should wait a year or two to determine the impact of the new production tax credits passed last year before making further changes.

Lawmakers also will consider funding a new facility to house the three-year-old Academy for Creative Media.

"We do need a facility — a permanent home for them, so we will be working on that this session," said Chang, chairman of the Committee on Higher Education.

Reach Sean Hao at shao@honoluluadvertiser.com.