BANK LAWSUIT: Tax Credit Problems

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Three years after the Iowa Film Office Scandal, the state may have another problem with tax credits, this time through a program called “The Iowa Fund of Funds.”

The fund was established in 2002 to spur venture capital investments in Iowa start-ups.

When private investors failed to step up, the state pledged the tax credits to banks willing to back investors.

Now, at least one bank wants its tax credits.

Regions Bank is suing the Iowa Department of Revenue and the Iowa Capital Investment Board, which oversees the “Fund of Funds.”

Last month, the board issued emergency rules, requiring certain documents verifying the amount and legality of the claimed tax credits.

During a hearing last week, Regions argued that would cause irreparable harm and violate its contract with the state.

The judge ruled against Regions, but two more cases are pending.

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