Moviemakers say tax breaks help Iowa - KWWL - Eastern Iowa Breaking News, Weather, Closings

Moviemakers say tax breaks help Iowa

DES MOINES (AP) -- No one will ever mistake Des Moines for Hollywood, but a generous two-year-old tax incentive has drawn a number 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.

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