Hawai'i's economic downturn has the state looking for ways to boost activity here, with even the state tax director traveling to California to pitch Hollywood executives.

Department of Taxation head Kurt Kawafuchi recently spent 2 1/2 hours with film and television executives during a meeting at Motion Picture Association of America offices near Los Angeles, briefing them on and answering questions about Hawai'i tax credits available to production companies shooting films, television shows, commercials and digital media projects in the state.

"In these tough times, Hollywood is still spending billions of dollars and we're trying to encourage more activity and investment in Hawai'i," said Kawafuchi, who briefed the executives in late October.

"We're trying to be proactive and do whatever we can to help Hawai'i's economy."

The Hawai'i Film Office and Kawafuchi are mindful that more productions can help offset some of the economic slowing projected this year and next for the state. Veronis Suhler Stevenson, a leading communications research firm, in August released a report saying spending on communications will outpace U.S. economic growth during the next four years and that entertainment media spending will increase to $110.3 billion in 2012, while broadcast television will become the largest advertising medium by the end of this year.

Kawafuchi and Hawai'i Film Commissioner Donne Dawson have been trying to shed as much light as they can on the state's production income tax credit in an attempt to attract more business. Eligible productions can qualify for a refundable tax credit for 15 percent of qualified production costs for O'ahu-based productions. On Neighbor Islands, the credit is 20 percent.

Dawson said since the credit was enacted in 2006 it's helped bring in more than $300 million in direct expenditures to the state. Recent big-budget movies filmed partly in Hawai'i include Dreamworks' "Tropic Thunder" and Paramount's "Indiana Jones and the Kingdom of the Crystal Skull."

The industry also is seen as desirable in helping to boost tourism counts at a difficult time, as well as generally being a clean industry. Productions that use the state's scenic locales as a backdrop also act as a tourism marketing vehicle.

Another credit that's available is the high-technology business investment tax credit that includes an income tax credit for Hawai'i taxpayers who invest in qualified companies producing performing arts products that include film television, video, audio and animation.

Kawafuchi, who said he paid for the California trip out of his own pocket, said a number of major studios including NBC Universal, Sony Pictures, and Walt Disney Pictures attended his presentation, which included Dawson's participation via a conference call. Kawafuchi said the executives had a number of questions and comments about how the incentives worked.

"A couple of people said they wanted to talk to us about business they want to bring to Hawai'i," he said.

Dawson said she's been getting Kawafuchi involved in meetings with studios in trying to gain an edge over about 40 other states offering tax incentives. Hawai'i also competes with countries for productions.

She said having the state tax director on hand to answer queries shows Hawai'i wants their business.

It sends "a message to Hollywood that the state takes this industry very seriously and it's important that we be viewed as user friendly," Dawson said.

"I've always said a tax incentive is only going to be as successful as it is easy to access."

Dawson said it's helpful for Kawafuchi to meet with executives in a business where one-on-one relationships can be important, or knowledge that they have a high-level contact in the tax department should they have other questions or concerns.

"We've got to take every advantage available to us to go out and talk about our credit," she said.