A new, full-service film studio in Hawaii has long been a goal of advocates for expanding the film industry in the islands.

Now the City Council is considering using property tax breaks to encourage construction of a film studio facility on Oahu. Bill 59, introduced by Council member Augie Tulba, passed first reading last week.

The idea is a good one, at least on paper, and the Council should consider it seriously.

Hawaii attracts a decent share of movie and television projects, thanks to its spectacular and diverse outdoor locations and generous production tax credits. The business supports hundreds of well-paying jobs, does not pollute, and diversifies the economy even as it promotes Hawaii as a tourist destination.

But lack of access to industry-standard production facilities and sound stages limits the amount of film work that can be done on-island — or by local talent.

The Hawaii Film Studio, owned and operated by the state, is the only full-fledged facility in the islands. It’s now in use by the crime procedural, “NCIS: Hawaii.” There are other sound stage facilities — essentially converted warehouses — but they lack many of the features of a proper studio, such as full soundproofing to cinema standards, multiple stages and structures for rigging lights and set pieces.

A new film studio on Oahu potentially can accomplish several things: expand the number of film and television projects the islands can host at any given time; improve the capabilities of local film industry workers, reducing the need for out-of-state talent; and compete with other states offering similar services.

The ultimate goal would be to strengthen and stabilize the often here-today-gone-tomorrow nature of film and TV projects.

It’s no slam-dunk, however; there’s a lot of competition. Other states, such as Louisiana, Oklahoma and New Mexico, as well as the Cherokee Nation, are aggressively promoting the development of new production facilities, as well as other production tax credits that remain essential to drawing in business.

Under the current version of Bill 59, an eligible film studio needs to invest a minimum of $100 million into the facility, with a 30-year commitment, to qualify for the property tax breaks. The studio would be expected to offer studio time at discounted rates to local filmmakers and host internship programs for students pursuing degrees in film or media studies.

Such an investment will depend on finding a major producer willing to roll the dice. That may require streamlining the state’s cumbersome land-use regulations. It also will depend on a steady flow of projects into the islands, for which state tax credits play a key role.

Hawaii currently offers a refundable state tax credit for qualified film, television, commercial or digital media projects that amount to 22% of qualified production costs incurred on Oahu and 27% on the neighbor islands, according to the Hawaii Film Office. To control costs, there are spending ceilings and credit caps, but overall, state officials are bullish on the incentives.

In the 2023 Legislature, 13 bills were introduced to provide inducements to draw more film productions here. It’s not hard to see why.

Since the passage of Hawaii film tax credits in 2006, spending on expenditures qualifying for the film credit has soared, from $128.2 million in 2007 to $355.6 million in 2019, according to a 2021 brief from the University of Hawaii Economic Research Organization (UHERO), written by Sumner La Croix and James Mak. And while the credits may cut into the state’s tax revenues, the industry support of local workers and businesses should be considered as part of the return on investment.

The bottom line: A new film studio, in combination with other competitive incentives, can encourage continued growth — or at least stability — in the film industry here.