Tax credits that have helped high-technology business investors save hundreds of millions of dollars may be in jeopardy when the Hawai'i legislature meets next year because of tight government funding.

Gov. Linda Lingle last week told listeners of the Rick Hamada radio show that her administration doesn't believe the state can afford the credits and will seek a rebalancing of them.

"There's going to be an outcry from certain industry groups and people from the other side who have benefited greatly from those credits," Lingle said.

"We're going to have to talk through what are the value of those credits to us."

The credits have been controversial at times, though also have a number of vocal supporters in the technology industry here. They allow investors to claim a tax credit for each dollar invested in a qualifying technology or other company as a way to attract new capital for the sector. A report earlier this month showed the credits offered through Act 221/215 saved investors in local high-tech businesses about $100 million in state taxes in 2006.

It was the highest use ever of the tax credit aimed at boosting investment in tech companies and in film and digital media work here.

But renewed questions about the loss in tax revenue to the state is coming at a time when Lingle's administration is looking to prune its budget because of Hawai'i's sluggish economy. In June Lingle ordered 4 percent across-the-board restrictions on state departments and agencies. The state Council on Revenues' most recent forecast indicated there will be a $900 million budget gap over the next three years.

Proponents of the credits say they are having a positive effect on the state's economy. A recent study for the Hawaii Science and Technology Council found the annual job growth rate for the private high-tech industry was 3.3 percent between 2002 and 2007.

During the same period job growth in the overall private sector was about 2.5 percent.

"In times of economic hardship it is extremely important to nurture those industries that are growing," said Lisa Gibson, president of the science and technology council.

"So in the future when we have downturns in our legacy industries like tourism there are some industries that are counter cyclical."

Gibson said the council won't support an effort to lower or do away with the credit. The council expects to bolster its case on Oct. 1 when brings the head of the Council for Community and Economic Research to town to talk about his findings about Hawai'i's private science and technology sector. The speaker, Ken Poole, also is to meet with others here, including the Honolulu Advertiser's editorial writers.

Lingle did not offer specifics on the changes she will be seeking and acknowledged that new jobs have been created.

But "we don't think we can afford to give the kind of generous credits that had been given because we simply can't afford it right now," Lingle said.

"You will see some proposals this session."