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Relax! Iowa is funding Hollywood again.

August 30, 2010

Iowa faces a $1 billion budget gap. Teachers and state employees have been laid off, salaries have been cut, courthouse hours are trimmed back and cases are delayed. But at least Hollywood is cashing in:

Two films, Sam Steele & the Junior Detective Agency and Ash, have received tax credits through the Iowa Film, Television, and Video Promotion Program. These are the first two films that have successfully been awarded credits from the Iowa Department of Economic Development utilizing the fully revised process of issuing tax credits.

"We are very pleased to be able to assist these companies with their Iowa projects," said Bret Mills, IDED director. "IDED, the Department of Revenue, Auditor of State's Office and the Office of the Attorney General, have designed and implemented a comprehensive process to ensure all parties involved have a clear understanding of the program and also that a full audit of the project is completed prior to the issuance of the tax credits."

The film program collapsed in scandal last fall, and the film office director and two filmmakers face criminal charges. Iowa is on the hook for $200 million for credits already committed -- about $66 per Iowan. Sure, it's tough for the 5,000 teachers that the $200 million could pay, but as a local opinion leader opines:

But some benefits can't just be measured on a dollar-for-dollar basis. The movies provide employment to local actors, construction crews, artists, caterers, drivers and a host of others. They expose non-Iowans to what the state has to offer. More intangible is the benefit of interactions in a state that can be cut off from the trends and centers of power. Not to mention the excitement factor. We've relied on caucuses every four years to bring action and celebrities to town. Now, sightings are anytime, any place.

And maybe if you're close enough, they'll throw you a dime!

Tags: Corporate welfare.Economic development.film credits.harold hill.Iowa Department of Economic Development.Iowa tax policy.

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