Lawmakers want to lure Hollywood back to Iowa with tax credits

Iowa lawmakers are weighing a bill that would give tax credits for the film industry in an attempt to lure studios and bring the Hawkeye State back to the silver screen.

House Study Bill 731 would allow for studios producing bigger-budget projects in Iowa to receive a 30% rebate for qualified spending, in a two-year pilot period from 2025-26.

The proposal comes years after a previous iteration of film credits in Iowa was plagued by scandal and led to years of court battles, $26 million in improperly distributed credits and seven convictions.

Rep. Brent Siegrist, R-Council Bluffs, said he believed the new proposal “clearly takes care of ” any lingering concerns with oversight remaining from Iowa’s last stab at the program.

“I think it’s going to be potentially a very successful effort,” Siegrist said.

And Rep. Brian Best, R-Glidden, recalled watching “Field of Dreams” and feeling “so proud of Iowa.”

Several film groups and studios testified in support of the tax credit program Tuesday.

Jennifer Kingland, with the Clear Lake-based studio Renovo Media Group, said she had seen Iowa passed over for projects in favor of states that do have tax credits, including one film that originated from the Iowa Writers’ Workshop that ended up filming in Kentucky.

Lawmakers suggested several tweaks to the existing program, such as lowering the minimum budget for a film to qualify for a rebate (currently the minimum stands at $1 million). Rep. Chuck Isenhart, D-Dubuque, said Iowa could help establish a growing film industry at home with changes and carve-outs to the bill.

“Part of this bill needs to be about growing a native filmmaking industry,” Isenhart said.

The bill earned bipartisan support in a subcommittee hearing Tuesday, though lawmakers face a Friday deadline to pass it through the House and onto the Senate floor in order to survive the session’s second “funnel” deadline.