Tuesday, September 22, 2009

Iowa Suspends Tax Incentive Program for Filmmakers


Thomas Wheeler, Manager of the Iowa Film Office, has been fired by Governor Chet Culver (pictured with actor Michael J. Fox), who has called for an investigation by the state auditor and attorney general, as well as the Revenue Department, into alleged abuses in the program.

In a separate development, Sen. Tom Courtney, chairman of the Legislature’s Government Oversight Committee, has announced that he will also begin an investigation.

The program provides millions of dollars in tax credits for filmmakers who choose to shoot their films in the state. Up to 50 percent of what is spent by production companies in Iowa can be recovered. The program has been suspended until the outcome of the investigation is determined.

Criticism of the program includes inappropriate spending and poor accounting.

Michael Tramontina, the head of Iowa’s Economic Development Department, and Vince Lintz, Deputy Director of the Department, which oversees the tax incentive program, have both resigned from their positions.

Amy Johnson, who is a project manager in the Economic Development Department, will take over as interim manager of the Iowa Film Office.

At a press conference on Monday, supporters of the program urged the governor to allow the program to continue during the investigation. The Governor reaffirmed his decision to suspend the program. Governor Culver’s goal, according to a letter he wrote, is to improve the program in order to make it more accountable to Iowa taxpayers.

For more info: Iowa Film Office

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