Hawai'i's generous tax credits for technology have spurred investor interest, business activity and jobs, though putting an exact dollar amount on the economic benefits is difficult.

What is known is the credits have helped bring in $184.5 million to Hawai'i companies since 2001, according to state Tax Director Kurt Kawafuchi. And since then, the state has foregone $110 million in tax revenues as a result of the program. Supporters of the incentives point out that in recent years, Hawai'i's tech industry has grown, providing a boost to local companies such as Hawaii Biotech, Hoku Scientific and Hoana Medical.

However, it is unclear how much economic activity they are generating because the identities of the companies benefiting from the credits are confidential, and the state does not track the number of jobs created.

"I think it's created a lot more jobs here," Kawafuchi told a group of about 200 people attending a downtown technology industry luncheon yesterday. "I don't have the actual data yet, but that's my sense from seeing the interest today — 200 attendees."

A report on the state's technology tax credits known as Act 221/215 is scheduled for release next week and could shed light on the program's benefits, Kawafuchi said. As tax director, Kawafuchi is charged with policing the program, which sunsets at the end of 2010. At the current cost of nearly $50 million a year, the tax-credit program could easily top $300 million by the time the high-tech incentive program expires.

"I think there may be a study done before 2010 or several studies to try to evaluate the Act 221/215 incentives," he said. "At the same time, I want to have a long-term view — it takes time to grow companies.

"I don't want to rush to any judgments or conclusions today," Kawafuchi added. "I've seen a lot of positive and exciting good things for the state of Hawai'i, but we still have to see what happens in the next several years."

Apart from job creation, the tax credits have stimulated interest in technology, Kawafuchi said.

"I think we see some of the more conservative, regulated industries now starting to become more involved, certainly involved as investors, he said. "It's generated a lot of interest in diversifying the economy and also looking toward Hawai'i's long-term future."

The investment credits provide a 100 percent or more tax break for technology investments. According to the law, every dollar invested in qualifying high-technology ventures can be used to reduce state tax obligations by $1. The tax credits can be claimed over a five-year period and capped at $2 million per investment.

Jeff Au, managing director for Honolulu venture capital firm PacifiCap Group LLC, said the tax credits have broadened the state's pool of potential investors to include more big and small companies and their owners.

"The other major benefit we see is engagement of mainstream businesses here and the so-called Bishop Street crowd both as investors and customers for some of our portfolio companies," he said.

Reach Sean Hao at shao@honoluluadvertiser.com.