261—36.7 (15) Qualified expenditure tax credit.
	 36.7(1) Description.
	  a.   	 For tax years beginning on or after January 1, 2007, a qualified expenditure tax credit shall be allowed against the taxes imposed in Iowa Code chapter 422, divisions II, III, and V, and in Iowa Code chapter 432, and against the moneys and credits tax imposed in Iowa Code section 533.24, for a portion of a taxpayer’s qualified expenditures in a project registered under the program.
	  b.   	 The tax credit shall equal 25 percent of the qualified expenditures on a project.
	  c.   	 Under rule 261—36.7(15), an individual may claim a tax credit of a partnership, limited liability company, S corporation, estate, or trust electing to have income taxed directly to the individual. The amount claimed by the individual shall be based upon the pro rata share of the individual’s earnings from the partnership, limited liability company, S corporation, estate, or trust.
	  d.   	 Any tax credit in excess of the taxpayer’s liability for the tax year may be credited to the tax liability for the following five years or until depleted, whichever is earlier.
	  e.   	 A tax credit shall not be carried back to a tax year prior to the tax year in which the taxpayer claims the tax credit.
	 36.7(2) Qualified expenditures. A qualified expenditure by a taxpayer is a payment to an Iowa resident or an Iowa-based business for the sale, rental, or furnishing of tangible personal property or for services directly related to the registered project including, but not limited to:
	  1. 	 Aircraft.
	  2. 	 Vehicles.
	  3. 	 Equipment.
	  4. 	 Materials.
	  5. 	 Supplies.
	  6. 	 Accounting.
	  7. 	 Animals and animal care.
	  8. 	 Artistic and design services.
	  9. 	 Graphics.
	  10. 	 Construction.
	  11. 	 Data and information services.
	  12. 	 Delivery and pickup services.
	  13. 	 Labor and personnel. “Labor and personnel” does not include the director, producers, or cast members other than extras and stand-ins.
	  14. 	 Lighting.
	  15. 	 Makeup and hairdressing.
	  16. 	 Film.
	  17. 	 Music.
	  18. 	 Photography.
	  19. 	 Sound.
	  20. 	 Video and related services.
	  21. 	 Printing.
	  22. 	 Research.
	  23. 	 Site fees and rental.
	  24. 	 Travel related to Iowa distant locations.
	  25. 	 Trash removal and cleanup.
	  26. 	 Wardrobe.
	 36.7(3) Approval of tax credit—process.
	  a.   	 After verifying the eligibility for a tax credit under this program, IDED shall issue a film, television, and video project promotion program tax credit certificate to be attached to the taxpayer’s tax return.
	  b.   	 The tax credit certificate shall contain the taxpayer’s name, address, tax identification number, the date of project completion, the amount of credit, other information required by the department of revenue, and a place for the name and tax identification number of a transferee and the amount of the tax credit being transferred.
	  c.   	 A tax credit certificate issued may be transferred to any person or entity. Within 90 days of transfer, the transferee shall submit the transferred tax credit certificate to the department of revenue along with a statement containing the transferee’s name, tax identification number, and address, and the denomination that each replacement tax credit certificate is to carry and any other information required by the department of revenue. Within 30 days of receiving the transferred tax credit certificate and the transferee’s statement, the department of revenue shall issue one or more replacement tax credit certificates to the transferee. Each replacement tax credit certificate must contain the information required for the original tax credit certificate and must have the same expiration date that appeared in the transferred tax credit certificate. Any certificates issued on or after the program's effective date, May 17, 2007, may be freely transferred without regard to face value. A maximum of two transfers shall be allowed.
	  d.   	 A qualified expenditure tax credit shall not be claimed by a transferee until a replacement tax credit certificate identifying the transferee as the proper holder has been issued.
	  e.   	 The transferee may use the amount of the tax credit transferred against the taxes imposed in Iowa Code chapter 422, divisions II, III, and V, and in Iowa Code chapter 432, and against the moneys and credits tax imposed in Iowa Code section 533.24, for any tax year the original transferor could have claimed the tax credit. Any consideration received for the transfer of the tax credit shall not be included as income under Iowa Code chapter 422, divisions II, III, and V, under Iowa Code chapter 432, or against the moneys and credits tax imposed in Iowa Code section 533.24. Any consideration paid for the transfer of the tax credit shall not be deducted from income under Iowa Code chapter 422, divisions II, III, and V, under Iowa Code chapter 432, or against the moneys and credits tax imposed in Iowa Code section 533.24.
	 36.7(4) Approval of tax credit—reporting. All qualified expenditures made for a registered project must be submitted on Form Z, Schedule of Qualified Expenses, or in a format approved by the department prior to production once the producer has completed the project. No additional claims will be accepted once the Schedule of Qualified Expenses or previously approved documentation has been received by the Iowa film office.