DeWalt wins Clean Out case

Minds Eye Entertainment has won a court battle against the State of Iowa over millions of dollars worth of frozen tax credits for its latest feature Clean Out.

A Polk County District Court judge has ordered the Iowa Department of Economic Development to issue $6.5 million in film tax credit certificates for Clean Out, an $18.7 million movie that had been set to shoot in Iowa in October, but was forced to postpone production when the state suspended its film incentive program.

Kevin DeWalt

‘I am very pleased the court has recognized my right to receive tax credits issued by the State of Iowa,’ said Kevin DeWalt, president and CEO of the Saskatchewan-based production company, in a statement. ‘As a multi-country co-production this is an incredibly important project for me and my company. I certainly feel vindicated by this ruling. The most important thing is that this ruling should allow the project to move forward, assuming there are no more surprises. We are anxious to reassemble our cast and crew and get rolling as soon as possible.’

According to DeWalt, Clean Out was approved to receive the state’s lucrative tax credit — 50% of the cost of production in Iowa — and began preproduction in September. However, that same month Iowa Governor Chet Culver froze the tax-credit program over allegations of mismanagement and an investigation launched.

Although Minds Eye and Clean Out are not part of the criminal probe, the Department of Economic Development withheld the tax credit, so the production company launched a breach of contract lawsuit, which was heard in an Iowa courtroom on Nov. 9.

Clean Out is a crime caper starring Timothy Dalton, Elliott Gould and Harvey Keitel. The dark comedy features rival Russian and Italian mobsters collaborating on a money-laundering scheme.

Minds Eye has not yet set a new date for filming to begin in Iowa. Shooting will also take place in Winnipeg, Zurich and Cannes.

Clean Out is an internationally financed coproduction between Canada, U.S., France and Switzerland.