Tax credit for movies has immediate effect

By Abby Simons / DES MOINES REGISTER / May 18, 2007

Only minutes after Gov. Chet Culver signed into law a bill that would provide tax incentives to movie producers who create their films in Iowa, the three young partners of an independent film company looked out over the Mississippi River and plotted a script to match their new movie setting.

"This is huge," said Scott Beck, 22, of Bettendorf, who with friends Travis Shepherd, 24, and Bryan Woods, 22, own and operate production company Bluebox Limited.

"We're filmmakers, and our goal is to continue making films in Iowa on a larger scale. We try to cut corners with as much money as possible, and this will encourage other filmmakers to stay in the state, and people in Hollywood will come here."

House File 892 offers 25 percent tax credits for local filmmaking expenses and overall investments for films shot in Iowa with budgets of more than $100,000.

Supporters of the bill, including lawmakers, local film industry experts and economic development officials, say filmmaking could become a source of economic growth and jobs by attracting Hollywood producers who spend big bucks in Iowa communities when shooting within the state.

Culver signed the bill into law while kicking off a series of "Capitol for a Day" events that will bring state officials to communities around Iowa this summer. He toured Dubuque's recent economic development projects, also meeting residents and civic leaders.

He said filmmaking not only promotes the state but has lasting economic effects. "The impact of these movies has been felt long after the actors and directors have packed up their belongings and returned to Hollywood," Culver said.

Steve Schott, producer of "The Final Season," shot last year in eastern Iowa, illustrated that point. He said that during production, his crew racked up more than 3,000 hotel nights and hundreds of rental cars. That's not to mention the thousands of dollars spent in restaurants and local stores.

The incentives, which are offered by most of Iowa's neighbors, are also what attract investors when filming in a certain state, Schott said.

"I'd call them and tell them about my project. Their first question was always 'Do you have a tax incentive bill?' No. Click," he said.

Two potentially large-scale projects have awaited the governor's signature and will probably begin shooting this summer. Thriller "Curse" will be shot in Marshalltown, while "Sugar," the story of a Dominican baseball player, will begin production in Davenport.

The benefits aren't just for cities. Producers will be seeking Iowans to assist crews, said Kent Newman, a film writer, director and producer and president of the 100-member Iowa Motion Picture Association.