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Film industry wants unlimited access to Iowans' wallets

August 10, 2009

Hollywood says $50 million in giveaways isn't enough.

Iowa has the most generous giveaway for filmmakers in the country, with transferable tax credits (in other words, cash subsidies) for up to half of a film's Iowa production costs. Lawmakers realized that this credit, along with some other corporate welfare credits, created an unlimited potential liability for the state. They limited the total allowable amount for film credits and other corporate welfare to $185 million, to be split among the credits by the Department of ~~corporate welfare~~Economic Development. The IDED wants to give $50 million of the $185 million to the film credits.

The film crowd says that just isn't enough:

Movie advocates said the restrictions come as dozens of movie producers have started to consider Iowa home.

"If you do this, it will be stillborn," said Jay Villwock, an unemployed Des Moines resident who hopes to work in movies.

We should be so lucky. The film credit program is an outrageous subsidy of a well-lobbied industry paid for by the rest of us. The stampede to take our money just shows that Hollywood is always happy to take free money. Yet there is no evidence that a $50 million subsidy for Hollywood will do more for our economy than a $50 million subsidy for any other industry - or than letting the taxpayers keep the money.