Tax incentives promise boost for Iowa film industry

By David Burke / QUAD-CITY TIMES / May 18, 2007

Scott Beck and Bryan Woods had fourth-row seats Thursday to what could be a major advancement in their careers.

The Bettendorf filmmakers, through their company, Bluebox Limited, were among a crowd of about 100 looking on as Gov. Chet Culver sign a tax incentives plan for Iowa filmmakers into law.

“This is a huge leap for Iowa, and it’s so important to Bryan and I as we pursue this career,” Beck said.

The bill signed by Culver — in Dubuque for the first in a series of traveling “Capital For a Day” programs — would give filmmakers a 25 percent income tax credit, based on expenditures above $100,000, for Iowa residents and Iowa companies. It also would let Iowa companies and the people they hire exclude the income from their state income taxes.

“This is pretty much what we asked for in the very beginning,” said Tom Wheeler, manager of the Iowa Film Office, a division of the Iowa Department of Economic Development.

Woods and Beck, who are graduating this spring from the University of Iowa, said the incentives allows filmmakers like themselves to stay in the state, rather than be lured to California.

“It’s a great thing for big movies, but it’s also a great thing for smaller films,” Woods said. “Our dream is to stay here and make films in Iowa, and that’s exactly what we need to happen.

“It means making bigger films in Iowa more of a reality.”

Culver cited movies such as “Field of Dreams” and “The Final Season,” which filmed in Cedar Rapids last year and is scheduled to be released this year, as “a product that promotes our state to people across the country and around the world.”

“The Final Season,” based on the state baseball championship won by Norway High School, spent $1 million in production in the state, while its cast and crew spent an additional $400,000 to $600,000 in the community.

Culver said the incentives would bring an estimated $200,000 to the state for this fiscal year; $500,000 next year, and $800,000 by 2010.

Mike Tramontina, director of the Iowa Department of Economic Development, said movie production brings excitement to Iowa communities.

“People want to come over, to see it and be a part of it,” he said. “You don’t want to underestimate the impact of that.”

In the Quad-Cities last summer, Italian brothers Pupi and Antonio Avati filmed their movie “The Hideout.” Doug Miller, Davenport-based production manager for the movie, said that film was in its final stages of post-production for the English-language version.

Miller delivered a letter of thanks from the Avatis and a company ballcap to Culver.

“It makes it a lot easier” for the Avatis to produce movies with the incentives, Miller said. “They both are very interested in production in the Quad-Cities. They like the community tremendously.”

Another movie, of the scale of “The Hideout,” will be produced in the Quad-Cities late this summer, Miller said. Details about the production will likely be available in a few weeks, he said.

Scott Tunnicliff, executive director of the Bettendorf Chamber of Commerce, said the incentives will have a ripple effect on other businesses, from caterers to hardware stores.

“It’s going to be bigger than most people in the area realize, when you factor in the businesses who will benefit from movies here,” Tunnicliff said. “It’s all about being able to carry Iowa forward as a production center for all kinds of movies.”

Wheeler said neighboring states have film incentive packages that are drawing more movies to Minnesota and Illinois, and Wisconsin has a similarly attractive package that will be in effect in January. But none of them offer the income tax credit that Iowa is providing.

“Our program will match Wisconsin’s, plus we’ll have a little bit more. And our ‘little bit more’ is offering our service providers the opportunity to waive what they’ve earned on their state income taxes. That allows them to lower their rates up front, and give them a greater negotiating leverage,” Wheeler said.

The state, however, wants more collaboration than competition with its neighbors.

“We want to keep up with them, and we really want to collaborate with neighboring states, and pool our resources,” he said.

Wheeler said the first indications of the incentives would be seen by July 1.

“This is history in the making,” he said.