High-tech industry ready 'to give back'

By Sean Hao
Advertiser Staff Writer

While state lawmakers considered tax incentives for films, hotels and even a motor sports facility, the technology community was the only group to land such tax breaks this year.

That puts added responsibility on the fledgling industry to act responsibly, said Ted Liu, director for the Department of Business, Economic Development and Tourism, in remarks to about 130 technology industry representatives yesterday. That includes pushing for reforms to education and workforce development and for other changes to improve the state's business climate, Liu said, during the Hawaii Technology Trade Association's annual meeting at the Waialae Country Club.

"Many have said the tech community had it good this year," he said. "Truly it has. Sometimes we lose sight of the fact that, yes, the tech community was the only community that had a huge tax incentive passed and extended."

Liu was referring to technology tax credits available under Act 221 that would be extended until 2010 under a bill recently passed by the state Legislature. Gov. Linda Lingle is expected to sign the bill. Without the extension, the program would have ended next year. Although qualifications for the program were raised, the credits still provide a 100 percent or more tax break for technology investments and a 20 percent tax break for research and development. Those are generous compared to incentives afforded other industries in the state, Liu said.

"That kind of puts the tech community in a very special position," he said. "And with that special position to my mind comes a special responsibility — one that doesn't have the broader community looking at us as being basket cases worried only about what we want and not at what our broader community needs or the contributions that we could be making to the broader community to create a better environment, a better business environment for Hawai'i," Liu said.

David Watumull, incoming chairman for the HTTA, agreed that the state's technology industry can take a broader view of its interests.

"We do have a larger responsibility," said Watumull, who's also president and chief executive for Hawaii Biotech. "I think this community has been good to the tech community (and) good to the biotech community.

"We need to recognize that, and we need to give back through not just addressing our own issues but the broader community issues."

During the past two years the technology industry has focused on retaining and extending Act 221, but historically it has also been interested in education and workforce development issues, Watumull said.

"Hopefully we have the opportunity now to revisit those issues," he said. "They are important."

Reach Sean Hao at shao@honoluluadvertiser.com or 525-8093.