Two more people are out of work following the controversy over Iowa's film industry. Governor Culver has asked for the help of State Auditor David Vaudt's office and the office of Attorney General Tom Miller in the investigation into alleged abuses of the state's film tax incentive program.
On Monday Governor Culver fired the head of the Iowa Film Office, Tom Wheeler. Culver also accepted the resignation of the deputy director of the Iowa Department of Economic Development, Vince Lintz.
The governor put the brakes on the incentive program Friday after then IDED director Mike Tramontina released a memo detailing abuse allegations of the program. Tramontina resigned later that day.
One of the items listed on that memo was a 2008 Range Rover. It was purchased by Bruce Isaccson, the director of the movie " South Dakota." Channel 13 talked to Isaccson on the phone and he says he disclosed all purchases and didn't do anything wrong.
The tax credit suspension has filmmakers uncertain about their future in Iowa and some projects have already pulled out of the state.
The promise of tax credits is what drove the Los Angeles-based company Grass Horse Technologies to relocate to Iowa. Since moving to Mount Pleasant the company, which specializes in video animation, has expanded from two full time employees to 22.
Owner Stephen Jennings says the program has been instrumental in supporting his business and expansion and he says the problem of misusing tax payer dollars lies with oversight and not the majority of filmmakers.
"In creating something like this, having one person try to manage 20 projects at once that equal $30 million in tax incentives...that's a pretty difficult task for one person to manage on their own," says Jennings.
He says without tax credits his company would have to drastically downsize, likely eliminating jobs.
Governor Culver issued a statement offering filmmakers hope that the program could return. "My actions are intended to protect the best interest of Iowans, and not to harm the growing film and television industry in our state." The statement continues with, "This program should continue only after we have the controls, oversight, and due diligence in place to assure that it operates properly."
So far, 22 film projects have received $32 million in tax credits. To qualify, the projects must spend at least $100,000 in Iowa.
That money can be used on anything from vehicles and equipment to music and research materials. All projects are required to enter into contracts with the Department of Economic Development.
On Monday Governor Culver fired the head of the Iowa Film Office, Tom Wheeler. Culver also accepted the resignation of the deputy director of the Iowa Department of Economic Development, Vince Lintz.
The governor put the brakes on the incentive program Friday after then IDED director Mike Tramontina released a memo detailing abuse allegations of the program. Tramontina resigned later that day.
One of the items listed on that memo was a 2008 Range Rover. It was purchased by Bruce Isaccson, the director of the movie " South Dakota." Channel 13 talked to Isaccson on the phone and he says he disclosed all purchases and didn't do anything wrong.
The tax credit suspension has filmmakers uncertain about their future in Iowa and some projects have already pulled out of the state.
The promise of tax credits is what drove the Los Angeles-based company Grass Horse Technologies to relocate to Iowa. Since moving to Mount Pleasant the company, which specializes in video animation, has expanded from two full time employees to 22.
Owner Stephen Jennings says the program has been instrumental in supporting his business and expansion and he says the problem of misusing tax payer dollars lies with oversight and not the majority of filmmakers.
"In creating something like this, having one person try to manage 20 projects at once that equal $30 million in tax incentives...that's a pretty difficult task for one person to manage on their own," says Jennings.
He says without tax credits his company would have to drastically downsize, likely eliminating jobs.
Governor Culver issued a statement offering filmmakers hope that the program could return. "My actions are intended to protect the best interest of Iowans, and not to harm the growing film and television industry in our state." The statement continues with, "This program should continue only after we have the controls, oversight, and due diligence in place to assure that it operates properly."
So far, 22 film projects have received $32 million in tax credits. To qualify, the projects must spend at least $100,000 in Iowa.
That money can be used on anything from vehicles and equipment to music and research materials. All projects are required to enter into contracts with the Department of Economic Development.
