DES MOINES, IOWA (AP) -- No one will ever mistake Des Moines for Hollywood, but a generous two-year-old tax incentive has drawn anumber of moviemakers to Iowa.
Now some supporters of the tax breaks are asking legislators to remove a $50 million cap they imposed in the last legislative
session to ensure more moviemakers come to the state. Since legislators approved the tax breaks in 2007, the state has
issued about $32 million in tax credits for more than 20 film projects.
The Legislative Fiscal Bureau estimated economic activities from that moviemaking have generated $810,000 more for
the state than it has lost in potential tax revenue. Under Iowa's program, investors and producers get a tax credit
for up to 50 percent of spending on a film production. That means that don't pay taxes on half of their spending.
(Copyright ©2009 by The Associated Press. All Rights Reserved.)