Weekly Round-Up: Film Tax Credits Suffer Setbacks in Iowa, and Beyond

A Polk County, Iowa, District Court judge has sentenced the former director of the Iowa Film Office to two years' probation for his efforts to secure tax credits for a film company between 2008 and 2009, Mark Wolski writes in this week’s issue of the Weekly State Tax Report.

The state shut down the state’s film office and its tax credit program in 2009 after allegations that credits were being awarded erroneously, Wolski reports. A report issued the following year shows that, of the 32 million in tax credits awarded by the office, $26 million had been improperly awarded, he states.

Iowa’s film program is not the only one facing problems. A report released earlier this year by Joseph Henchman, of the Tax Foundation, argues that film tax credits “fail to live up to their promises to encourage economic growth overall and to raise tax revenue.” States claim these incentives create jobs, but the jobs created are mostly temporary positions, often transplanted from other states, Henchman states.

Henchman predicts that 2010 will be the peak year for such credits, as many of these programs end and states decide to use the money elsewhere.

Mark Wolski’s complete report on Iowa’s film tax credit can be read in its entirety here. Joseph Henchman complete review of film tax credits can be read in its entirety here.

In other developments,

Deloitte issues a summary of recently enacted Michigan individual income tax law changes.

Adam Weinreb, of PricewaterhouseCoopers LLP, reviews recent corporate income tax amendments out of Michigan.

Sutherland takes a look at tax issues that arise in the gaming environment.

By Priya D. Nair
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