Iowa settles portion of film tax credit lawsuit

DES MOINES, Iowa (AP) — Iowa has settled a portion of a lawsuit by a Rhode Island man who says the state cost him millions of dollars when it ended its film tax credit program in 2009.

The Des Moines Register says (http://dmreg.co/1aiv5SP) the state has agreed to pay $225,000 to financiers of the movie “2001 Maniacs: Field of Screams.” The settlement partially resolves the lawsuit filed for Anthony Gudas, of Providence, R.I. He says his company invested in four film projects based on state contracts, but the tax credits were never paid.

The lawsuit over the three other film projects continues.

The film tax credit program was halted after a state audit uncovered $26 million in credits that were improperly issued by the Iowa Department of Economic Development. Seven people eventually were convicted.

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Information from: The Des Moines Register, http://www.desmoinesregister.com

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