Court rejects lawsuit in dispute over Iowa film tax credits
IOWA CITY – The Iowa Supreme Court on Friday upheld the state’s refusal to award the full amount of tax credits claimed by the makers of a 2009 documentary tied to the “Field of Dreams” movie.
The court dismissed a breach-of-contract claim filed by investors who bankrolled the movie “Ghost Player: Relive the Magic,” which was featured on public television.
The dispute stems from an Iowa film tax credit program that was the nation’s most generous when approved in 2007. State officials shut it down in 2010 amid claims that mismanagement and fraud had led to millions of dollars of credits being improperly awarded. Several employees were fired, and criminal charges were brought against some filmmakers, investors and film office manager Tom Wheeler.
Dozens of movies that had filming contracts were caught up in the fiasco, and many either abandoned their projects or agreed to legal settlements in which they were granted a fraction of what they originally claimed.
“Ghost Player” maker Joe Scherrman, of Dyersville, said he believed the state owed about $400,000 in tax credits under the contract signed in 2009. But state officials disputed some expenditures that he believed should be covered, and ultimately ruled that his project qualified for $59,000.
Scherrman’s company, Ghost Player LLC, and a movie investor, CH Investors LLC, filed the lawsuit. In a 7-0 ruling, the court said the investors were required under Iowa law to challenge the state’s calculation of tax credits through an administrative action first.
Scherrman’s attorney, J. Helton, said he looked forward to pursuing an administrative hearing. “We think the state owes us quite a bit more than what they think they owe us. We were following what we had been told by officials at the Film Office,” he said.






