Filmmaker faces 10 years in jail for film tax credit fraud

Copyright Cinetics

A filmmaker has been found guilty of creating a fake purchase agreement in order get tax credit relief from the state of Iowa.

Originally from Nebraska, 64-year-old Dennis Brouse bought a camper trailer for $10,500 but made a claim under the film tax credit program with a figure that was double the selling price according to KCRG.

Brouse, who has produced the series 'Saddle Up with Dennis Brouse' faces up to 10 years in jail for making false statements regarding his film expenditures in the state. The producer had been convicted back in 2012 for the same offense, which was initially reversed by the Court of Appeals.

'Saddle Up with Dennis Brouse' aired on Iowa Public Television and highlighted the relationship between horses and humans.

It was back in 2011 that the Iowa film tax credit program faced a crisis amid abuses and multiple allegations of fraud involving 6 filmmakers. The state's film commissioner had also been accused of criminal misconduct and following the scandal, rules and regulations in multiple states were tightened to avoid future tax credit misappropriations.

In Bourse's case, there will be a hearing on March 23rd where a judge will decide on a sentence.

Producers looking to apply for film tax credits should get legal advice on how to benefit from local incentives and understand what expenditures qualify under each program before claiming relief.