A Polk County Judge has ruled the Iowa Department of Economic Development should pay a Canadian filmmaker $6.5 million in tax credits.
The ruling could have bigger ramifications down the road, as several filmmakers who have been denied tax credits weigh legal action against the state.
Iowa Eye Entertainment LLC sued the Iowa Department of Economic Development earlier this month alleging the state breached its contract regarding issuing tax credits to finance their work. The company received initial approval from the state to receive tax credits, but after Gov. Chet Culver suspended the film credit program in the wake of alleged misconduct, the filmmakers were told they were never under contract to get the credits.
District Judge Glenn Pille agreed with the company’s assertions and said he will hold a hearing Friday before he orders the state to issue the credits.
“The court finds that the underpinning facts surrounding plaintiff’s request are relatively undisputed,” Pille’s ruling said.
The state contends that the projects are among 109 that received initial approval but were not under contract to receive funding. Therefore, because there was no contract, the state is not required to provide funding. Iowa Attorney General Tom Miller has said that may not be true.
Miller’s spokesman, Bob Brammer, said the attorney general’s office is “considering all our options, including whether to ask the Iowa Supreme Court to review the decision.”