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Film Credits win first courtroom battle

November 18, 2009

A Polk County judge told Iowa that it will have to give up to $6.5 million to a Canadian film company. Iowa Eye will get the credits for its film "Clean Out," which is one of 23 films with "recognized" contracts that were put on hold when Iowa's film credit program ground to a halt in scandal and corruption in September.

There are some open questions, including what the new review process will be for approving expenditures for credits, and who will do it.

Iowa may appeal the decision, but it's not clear they have a straight-faced argument to not hand out the film welfare checks under the current statute. The real questions:

- Will Iowa have to give credits to the over 100 films that have registered for the credit but who do not have "recognized" contracts?

- Will films that don't get made be able to collect damages from Iowa for putting the program on hold?

The state has already blown over $30 million on the program, or about $10 per Iowan. The cost of the films in the "recognized contract" category, like "Clean Out," may be another $78 million. The film credit price tag could rise as high as $363 million if both questions are answered "yes."

Thanks, legislators!

Tags: Corporate welfare.Economic development.Film accountant report.film credits.Film criminal investigation.harold hill.Iowa.

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