House File 2368 - Introduced
HOUSE FILE
BY PAULSEN
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to a film promotion program to assist film,
2 television, and video projects in the state by providing
3 income tax credits, and providing effective and retroactive
4 applicability dates.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
6 TLSB 6323YH 81
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PAG LIN
1 1 Section 1. NEW SECTION. 15.391 FILM PROMOTION PROGRAM.
1 2 This part shall be known as the "film promotion program".
1 3 Sec. 2. NEW SECTION. 15.392 PURPOSE.
1 4 The purpose of the film promotion program is to assist
1 5 legitimate film, television, and video producers in the making
1 6 of film, television, and video projects in the state and to
1 7 increase the fiscal impact on the state's economy of film,
1 8 television, and video projects produced in the state.
1 9 Sec. 3. NEW SECTION. 15.393 PROGRAM == REGISTRATION ==
1 10 FILM PRODUCTION TAX CREDIT.
1 11 1. The department shall establish a film promotion program
1 12 that will provide for the registration of film, television, or
1 13 video projects that are to be shot on location in the state.
1 14 A film, television, or video project that is registered under
1 15 the program is entitled to the tax credit provided in
1 16 subsection 3. Registration shall be free. The department
1 17 shall not register a film, television, or video project unless
1 18 the department determines that all of the following are met:
1 19 a. The project is a legitimate effort to produce an entire
1 20 film, television, or video episode or a film, television, or
1 21 video segment in the state.
1 22 b. The project will have an economic impact on the economy
1 23 of the state or locality sufficient to justify assistance
1 24 under the program.
1 25 c. The project will further tourism and population
1 26 retention or growth in the state or locality.
1 27 d. The project budget for activity located in the state
1 28 equals at least two hundred fifty thousand dollars.
1 29 e. Other criteria established by rule relating to the
1 30 economic impact and promotional aspect of the project on the
1 31 state or locality.
1 32 2. A producer of a film, television, or video project
1 33 which has been registered pursuant to subsection 1 shall apply
1 34 to receive the certificate for the tax credit allowed under
1 35 subsection 3. The application shall be submitted upon
2 1 completion of the project's activities in the state. Upon
2 2 verification of the total amount that has been spent on the
2 3 project in the state, which amount must be at least two
2 4 hundred fifty thousand dollars, the department shall issue a
2 5 tax credit certificate in the amount determined pursuant to
2 6 subsection 3. A tax credit certificate shall identify the
2 7 producer claiming the credit and contain the taxpayer's name,
2 8 address, tax identification number, the date of completion of
2 9 the project, the amount of the credit, and other information
2 10 required by the department of revenue.
2 11 3. a. A producer of a film, television, or video project
2 12 which was registered pursuant to subsection 1 may claim a film
2 13 production tax credit equal to ten percent of the amount of
2 14 the project budget for activity located in the state. The tax
2 15 credit shall be allowed against taxes imposed under chapter
2 16 422, division II or III.
2 17 b. Any credit in excess of the tax liability shall be
2 18 refunded. In lieu of claiming a refund, a taxpayer may elect
2 19 to have the overpayment shown on the taxpayer's final,
2 20 completed return credited to the tax liability for the
2 21 following taxable year.
2 22 c. If the producer is a partnership, S corporation,
2 23 limited liability company, or estate or trust electing to have
2 24 the income taxed directly to the individual, an individual may
2 25 claim the tax credit allowed. The amount claimed by the
2 26 individual shall be based upon the pro rata share of the
2 27 individual's earnings of the partnership, S corporation,
2 28 limited liability company, or estate or trust.
2 29 Sec. 4. NEW SECTION. 422.11M FILM PRODUCTION TAX CREDIT.
2 30 The taxes imposed under this division, less the amounts of
2 31 nonrefundable credits allowed under this division, shall be
2 32 reduced by the film production tax credit allowed under
2 33 section 15.393.
2 34 Sec. 5. Section 422.33, Code Supplement 2005, is amended
2 35 by adding the following new subsection:
3 1 NEW SUBSECTION. 20. The taxes imposed under this division
3 2 shall be reduced by a film production tax credit allowed under
3 3 section 15.393.
3 4 Sec. 6. EFFECTIVE AND RETROACTIVE APPLICABILITY DATE.
3 5 This Act, being deemed of immediate importance, takes effect
3 6 upon enactment and applies retroactively to January 1, 2006,
3 7 for tax years beginning on or after that date.
3 8 EXPLANATION
3 9 This bill provides for a film promotion program within the
3 10 department of economic development. The program is designed
3 11 to assist legitimate film, television, and video producers in
3 12 making film, television, and video episodes or segments in the
3 13 state by granting refundable individual and corporate income
3 14 tax credits. The amount of the credit equals 10 percent of
3 15 the program budget spent in the state. The bill provides for
3 16 a minimum program budget for the state of $250,000.
3 17 The bill takes effect upon enactment and applies
3 18 retroactively to tax years beginning on or after January 1,
3 19 2006.
3 20 LSB 6323YH 81
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