FILM TAX CREDITS ATTRACT PROJECTS TO IOWA

While Iowa isn’t the Hollywood of the Midwest yet, the film project tax credit program is certainly attracting the attention of movie producers.  The tax credit was passed in 2007 and allows a film production to receive tax credits for costs they incur while in the state. 

 

The film tax credit allows up to 50% of the qualifying expenses to be credited against the tax liability.  The percentage is split with half going to in-state expenses and the other half going to the original investors.  There are several qualifying factors that a project must demonstrate prior to receiving the credit.  These include:

-Making an effort to produce an entire film, television, or video episode or film in the state.

-Spending at least $100,000 in the state and have a sufficient economic impact on the state or locality economy sufficient to justify assistance under the program.

-The project will further tourism, economic development, and population retention or growth.

-It’s anticipated that the project will be distributed widely in the Midwest.

-It cannot contain obscene material. 

The Department of Economic Development is happy with the success of the program thus far.  Part of their departmental bill addresses this film tax credit program to stretch those tax credit dollars even farther.  The goal being that even more projects come into the state to use the natural scenery and the wide variety of both urban and rural locations.

 

The good news is that the program will likely continue to grow.  After the success of “The Final Season” shot in and around Norway, Iowa, film producers will likely continue to look to Iowa as an economical and viable film location.  In addition, Iowa is ahead of many neighboring states with our comprehensive tax credit package.  Some states only offer credits for hotel rooms or offer a lower percentage of tax credits.  But the word is out about Iowa’s program and will keep spreading.  The Department of Economic Development is working hard to continue passing information on at trade shows and to members of the film industry, efforts that will surely bring additional spending into local economies.

 

An independent film called “South Dakota” just recently decided to film in the small town of Earlham. It will be the third film project to take advantage of the tax program with many more likely on the way.  The tax credits can make a big difference to film makers, like this one, with smaller, independent budgets.  The words of the filmmaker summarize it best: “After visiting Iowa, I decided it was the perfect South Dakota”.

 

APPROPRIATIONS COMMITTEE BEGINS TO APPROVE BUDGET BILLS-- BALANCE SHEET STILL A MISTERY

Two weeks ago, House Republicans announced that we will oppose all budget subcommittee bills because of the majority party’s refusal to allow Iowans to see the whole budget picture.

 

This week, the majority party Democrats continues to refuse to release the details on the budget to Iowans but began moving the budget bills out the House Appropriations Committee.

 

On Tuesday, March 11, the Appropriations Committee debated House Study Bill 772, the Judicial branch budget bill and House Study Bill 779, which provides funding for optical scan voting machines.

 

HSB 772 appropriates a total of $148.2 million from the general fund to the Judicial Branch. The Judicial Branch has 2,003.10 Full Time Equivalent (FTE) positions that are not limited in this Bill. This is a decrease of $200,000 and no change in FTE positions compared to the estimated FY 08 general fund appropriations.  The bill also appropriates $1.2 million from the Jury Witness Fee Revolving Fund to the Judicial Retirement Fund and $3.0 million from the Court Technology and Modernization Fund to the Judicial Retirement Fund.

 

The bill was approved on a 14-11 party-line vote.  However, it would have likely had Republican support had the majority party released the balance sheet.

 

HSB 779 creates the Optical Scan Voting System Fund for the purchase and distribution of voting systems to counties.  The bill provides a supplemental appropriation of $4.9 million from the Rebuild Iowa Infrastructure Fund (RIIF) to the new fund.  It also expropriates $4.6 million in existing RIIF appropriations -- $3.6 million for the new state office building and $1 million for an asbestos study of the Workforce Development building.  The bill increases the dollar amount of “notwithstanding” appropriations in the RIIF by $3.9 million.

 

The bill was approved on a 19-6 vote.  Since it was a supplemental appropriation, it was not part of the caucus position on failure to release the balance sheet.  However, several members voted against it because it adds to the amount of “notwithstanding” appropriations in the RIIF when we know that it is likely the majority party will significantly increase the notwithstanding appropriations in the RIIF bill.

 

House Republicans continue to push for sunshine when it comes to Iowa’s budgeting process as the budget bills come before the Appropriations Committee and the full House.

 

VAN FFOSSEN Follows-Through on Health Care Agenda--Comprehensive, Bipartisan Bill Passes the Iowa House

Exactly ten years after a historic vote to create the HAWK-I program, the Iowa House moved to modernize Iowa’s health care system on Tuesday.  Media reports on House File 2539 focus on intent language dealing with coverage for kids and adults.  But the real progress for health will come from a number of initiatives that will have a tremendous impact on Iowans’ lives and were priorities laid out by House Republicans in December.

 

Among the major changes included in House File 2539 are:

Improving access to health care coverage – The largest amount of complaints received by the Iowa Insurance Commissioner’s office deal with Iowans losing health care coverage due to pre-existing conditions.  While the bill does not completely eliminate this issue, it does take strides to help Iowans changing policies under the same company to avoid some of the pre-existing condition issues.

Electronic Medical Records and Health Information Technology – While medical technology and treatments have made great advances over the past twenty years, the way medical records are remained the same – on paper.  As society becomes more mobile, medical recordkeeping must advance to ensure that Iowans get the best possible medical treatment whether they are Des Moines, Pella, Atlanta, or Phoenix..

The bill sets up the mechanism to give Iowans the ability to have access to their health records when they are away from home.  House File 2539 creates an advisory committee to coordinate setting up electronic health records across the state.  This will help make Iowa the national leader in the adoption of health information technology.

Chronic Disease Prevention and Treatment – Countless experts and studies have found the best way for Americans to control the cost of health care is to address chronic diseases like diabetes, asthma, heart disease and other conditions.  By treating these diseases and educating patients on what they can do to manage their condition, several high profile test projects have demonstrated significant cost savings.  House File 2539 sets up a group in the Department of Public Health to coordinate information about chronic disease and start working with health care providers to implement best practices for chronic disease prevention and treatment.

Incentives for Small Business – One of the biggest advantages that large businesses have in providing health care coverage to their employees is the tax treatment.  Under section 125 of the IRS code, companies that provide a qualify health care plan get to deduct their expense “above the line”.  This can help reduce the cost of health care by up to 30 percent.  For small businesses, getting this benefit can be difficult and sometimes impossible.  But under a bipartisan amendment, the House voted to have the state’s Insurance Commissioner work with businesses employing 25 or fewer to set up qualifying plans and take advantage of this incentive to provide health care coverage.

 

The bill also starts a process to provide a tax credit to small businesses for wellness programs.  Helping Iowans to remain healthy and active is another key component to keeping health care costs in check. 

 

By adopting these key principles of the House Republican health care agenda, Iowa will be a healthier state and will see a slowing in the growth of health care costs in the future.