Iowa Democrats to Trim State Tax Credits

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By Becky Ogann

Story Created: Mar 11, 2010 at 1:28 PM CST

Story Updated: Mar 11, 2010 at 1:28 PM CST

DES MOINES (AP) - Legislative Democrats say they will slash spending on state tax credits by $115 million and put in place new oversight for programs that remain.

Democratic Sen. Joe Bolkcom, of Iowa City, says the changes will take spending on tax credits off automatic pilot.

The package unveiled Thursday would suspend for two years a tax credit program aimed at attracting moviemakers to Iowa, slash $65 million from business tax credits and refocus a tax credit for research.

The research tax credit would be cut in half for companies with revenues of more than $20 million a year, and increased by 50 percent for smaller companies.

Lawmakers are taking a closer look at the state's tax credit program after alleged abuses in film tax credit program were uncovered last fall.

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