Three years after a controversial law was passed giving Jeff Stone and other developers up to $75 million in state tax credits for building a world-class aquarium at Ko Olina Marina & Resort, lawmakers are asking if the rebate should be revoked.

Nearly two-thirds of state House lawmakers have signed onto a bill that would repeal the credits, the first $3 million of which can be claimed this year.

The bill reignites debate over the tax credit, which in 2002 was passed by the Legislature but vetoed by Democratic Gov. Ben Cayetano. It was passed again a year later and signed by Republican Gov. Linda Lingle.

"It is within our Legislative prerogative to revisit these kinds of things, especially when we're talking about a $75 million taxpayer subsidy," said Rep. K. Mark Takai, D-34th (Pearl City, Newtown, Royal Summit) and vice speaker of the House.

Takai introduced the bill co-sponsored by 32 of his colleagues to challenge whether the tax credit is delivering on its promise to stimulate economic development.

Of the 33 sponsors of the bill, 12 voted for the tax credit in 2003. They were joined by 12 lawmakers, including two Republicans, who opposed the legislation three years ago. Nine other bill supporters were elected since 2003.

Rep. Jerry Chang, D-2nd (Hilo), a co-sponsor who voted for the tax credit three years ago, said some lawmakers doubt whether Stone, Ko Olina's master developer, is going to deliver the aquarium and expected benefits.

"We just want to know what their progress is," Chang said. "If their intent is not to use it, let's repeal it and get our books in order."

The developers say they plan to finish the project and are making progress.

"We're moving along, doing all our (research and development) work, and progressing as methodically and effectively as we can," said Mike Nelson, a Ko Olina Resort vice president.

The bill, Nelson said, could scare away potential investors needed to advance the project if the legislation is perceived as having a real chance at passing and surviving a potential veto by Lingle, a strong advocate of the tax credit.

Nelson said the project has been slowed because of the difficulty of finding the right fit within the resort as well as zoning issues.

Under the aquarium tax credit law, developers have until 2009 to spend up to $75 million that could be reclaimed as a credit against state tax liabilities.

Stone initially projected that the aquarium might open in 2005. The developers revised the estimate several times and now expect to complete the project in late 2008.

The aquarium location also has been moved three times. First, it was to be built near the marina. Then it was moved farther inland, and later it was moved to an oceanfront location next to the JW Marriott Ihilani Resort & Spa. Now, it is back to a site closer to the marina.

"Stone jokingly called the project, the 'roving aquarium,' " according to minutes of a September neighborhood board meeting.

The concept for the aquarium also has changed. An earlier plan called for an adventure attraction in which visitors could swim with marine life in human-made lagoons.

Ko Olina officials told neighborhood board members as late as September that Ko Olina Adventure Park would be a unique themed-attraction in the class of Discovery Cove in Orlando, Fla., Atlantis Paradise Island in Nassau, Bahamas, and Ocean World Marina in the Dominican Republic.

The plan now calls for more traditional aquarium exhibits.

Kioni Dudley, a retired teacher who is on the Makakilo/Kapolei /Honokai Hale Neighborhood Board, said he likes the aquarium plan but wants to make sure it is attractive for more than just resort guests and busloads of tourists from Waikiki.

"It seems it's geared (more) for the people in the hotels and time-shares at the resort than for the people outside," he said. "I think there should be more parking to invite more people in."

Meanwhile, as aquarium plans have shifted, residential and resort development at Ko Olina has continued. Since the tax credit was granted, Ko Olina has expanded with a second phase of a 750-unit time-share project and three luxury-home projects have been started.

Stone has projected that the aquarium, by attracting hotels and other investments at the resort, would help generate $700 million in construction work, 2,000 permanent jobs and an average of 1,000 annual construction jobs over 10 years.

As part of the tax-credit package, Stone pledged to distribute $2.5 million in scholarship awards over six years primarily to Leeward O'ahu residents. To date, about $1 million has been distributed to about 900 scholarship recipients.

The tax credit allows the developer to reduce his state taxes by the amount spent on the aquarium. Qualified costs include design, planning and construction work on the aquarium and marine mammal research facilities.

Credits can be redeemed over 10 years or more, and are limited to $7.5 million per year.

This year will be the first year that West Honolulu Attractions, the aquarium developer, can seek to redeem credits for spending through the end of last year that totaled about $3 million.

Senate Tourism Committee Chairwoman Donna Kim, D-14th (Halawa, Moanalua, Kamehameha Heights), said she doesn't believe support for the tax credit has wavered in the Senate over the past three years. As a former City Council zoning committee chairwoman, Kim said she's not surprised by the planning difficulties aquarium developers have reported.

"It's a long process," she said.

The aquarium tax credit repeal bill is scheduled for its first hearing before the House tourism committee at 8:30 a.m. today.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.