The state’s troubled film tax-credit program took center stage again Wednesday with critics questioning its payback value and backers promoting its draw to keep and attract young workers.
“It’s absolutely a complete boondoggle giveaway,” said Victor Elias of Child and Family Policy Center, who cited numerous studies indicating film tax credits in other states have produced a poor return on investment at pennies on the dollar. He said the money spent on moviemaking could have paid for 1,500 to 4,000 school teachers.
Neil Wells, a writer and filmmaker, countered that the program has been a windfall — directly from movies shot and produced in Iowa and spinoff spending, jobs and image benefits associated with those projects. He said recent state budgeting decisions, not “evil Hollywood people,” are responsible for the state’s financial woes.
The comments were made during a Senate Ways and Means subcommittee meeting on a bill seeking to end the film tax credit. A separate subcommittee approved a measure to suspend the program at least through June 2011 while legislators revamp the credit.
State Sen. Herman Quirmbach, D-Ames, an Iowa State University economics professor, said he sees no way to fix the film tax-credit program under a suspension that would make it pay.
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Quad City Times
Rod Boshart
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