A sequel to the film tax credit mess

By The Gazette Editorial Board

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It's unfortunate, but understandable, that state leaders want to stay as far as possible from the scandal-ridden film tax credit program.

Trying to revive that well-intentioned incentive program would probably be political suicide after audits revealed such egregious mismanagement. Iowans were robbed.

And while we hoped the program could have been salvaged, scaled back and much better administered, there's likely no stomach for that in the governor's office or the Legislature.

The Film Office abuses were extensive, and it's probably best to bury the whole idea for now - even though we're sympathetic to several hundred Iowans who built jobs around the hopes that Iowa's film industry would flourish.

Yet we would hate to see the state abandon altogether its support of growing creative industries. Iowa's arts community enhances all our qualities of life - it's a sector of our economy and our communities that could flourish with some responsible, consistent - and well-managed - support.

State leaders should consider retooling the film tax credit idea. Provide incentives for the grass roots arts and cultural projects that would be likely to bring long-term economic development benefits and boost the artists and organizations that are unique to Iowa, embedded in our heritage.

We're still learning more details about financial mismanagement and abuse of Iowa's film tax credits, which were intended to help draw movie projects to the state and develop homegrown film professionals.

The Iowa Attorney General's Office has filed a lawsuit against 15 of 22 film companies that filed claims for the incentive. An audit revealed that nearly 80 percent of the $32 million those companies received in state tax credits was released without appropriate documentation.

The incentives did some good - bringing film projects to the state that employed local technical experts, hairstylists, chefs, and others. But after the program was suspended in September 2009, many of those Iowans have struggled financially. Some said they may move away to follow the filmmakers.

The film tax credits may have bombed irredeemably, but legislators should consider a sequel - one that avoids the pitfalls, of course. And one that redirects the intention of the disgraced program to help homegrown arts and cultural organizations thrive and bring widespread, long-lasting benefits to our state.