« Previous · Tax Update Blog Home · Next »
You knew this would happen once they shut the Iowa Film Credit money faucet:
A group of international filmmakers has sued Iowa's Department of Economic Development after having to postpone a multimillion-dollar project due to problems with Iowa's tax-credit program for filmmaking.The lawsuit, the first since Gov. Chet Culver suspended the program in September, alleges breach of contract after the state failed to issue a final contract needed to obtain financing to complete the film.
The lawsuit also seeks an injunction allowing the project to move forward.
We'll soon learn just what committments the state made to the filmmakers, and whether taxpayers will be on the hook for $363 million, the $32 million already spent, or something in between.
We'll no doubt hear lots of sad stories about films not being made because of the sins of a few bad apples. When you hear this, keep in mind that there isn't complete documentation for a single film out of the 18 or so already awarded credits, and only two films bothered to even submit receipts. The filmmakers haven't exactly earned the benefit of the doubt.
Sure, it's hard for the producers to have to wait on their Ipods, Benzes, and large payments to family members. We all have our crosses to bear.
Bookmark: del.icio.us • Digg • reddit
TrackBack URL for this entry:
http://www.rothcpa.com/mt/contages.cgi/1194
The items included in the Tax Update Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation.
Joe Kristan writes the Tax Update items, and any opinions expressed or implied are not neccesarily shared by anyone else at Roth & Company, P.C. Address questions or comments on Tax Updates to