Senate Study Bill 1176
SENATE/HOUSE FILE
BY (PROPOSED DEPARTMENT OF
ECONOMIC DEVELOPMENT BILL)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the eligibility for tax credits and income
2 reductions for qualified expenditures under the film,
3 television, and video project promotion program and providing
4 effective and retroactive applicability date provisions.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 15.393, subsection 2, paragraph a,
1 2 subparagraph (2), Code 2009, is amended to read as follows:
1 3 (2) A qualified expenditure by a taxpayer is a payment to
1 4 an Iowa resident or an Iowa=based business for the sale,
1 5 rental, or furnishing of tangible personal property or for
1 6 services directly related to the registered project including
1 7 but not limited to aircraft, vehicles, equipment, materials,
1 8 supplies, accounting, animals and animal care, artistic and
1 9 design services, graphics, construction, data and information
1 10 services, delivery and pickup services, labor and personnel,
1 11 lighting, makeup and hairdressing, film, music, photography,
1 12 sound, video and related services, printing, research, site
1 13 fees and rental, travel related to Iowa distant locations,
1 14 trash removal and cleanup, and wardrobe. For the purposes of
1 15 this subparagraph, "labor and personnel" does not include the
1 16 director, producers, or cast members other than extras and
1 17 stand=ins.
1 18 (i) For purposes of this subparagraph, "labor and
1 19 personnel" includes compensation paid, in an amount not to
1 20 exceed one million dollars each, to the principal producer,
1 21 the principal director, and the principal cast members,
1 22 provided that the principal producer, director, or cast member
1 23 is an Iowa resident or an Iowa=based business.
1 24 (ii) The department of revenue, in consultation with the
1 25 department of economic development, shall by rule establish a
1 26 list of eligible expenditures.
1 27 Sec. 2. Section 15.393, subsection 2, paragraph c, Code
1 28 2009, is amended to read as follows:
1 29 c. For tax years beginning on or after January 1, 2007,
1 30 the tax year in which a qualified expenditure occurred, and
1 31 for the ensuing three tax years, a taxpayer may claim a
1 32 reduction in adjusted gross income not to exceed in a tax year
1 33 twenty=five percent of the amount of the qualified expenditure
1 34 for purposes of taxes imposed in chapter 422, divisions II and
1 35 III, for payments received from the sale, rental, or
2 1 furnishing of tangible personal property or services directly
2 2 related to the production of a project registered under this
2 3 section which meets the criteria of a qualified expenditure
2 4 under paragraph "a", subparagraph (2).
2 5 Sec. 3. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES.
2 6 1. The section of this Act amending section 15.393,
2 7 subsection 2, paragraph "a", applies retroactively to January
2 8 1, 2008, for tax years beginning on or after that date.
2 9 2. The section of this Act amending section 15.393,
2 10 subsection 2, paragraph "c", applies retroactively to
2 11 qualified expenditures made in tax years beginning on or after
2 12 January 1, 2008.
2 13 3. This Act, being deemed of immediate importance, takes
2 14 effect upon enactment.
2 15 EXPLANATION
2 16 This bill relates to the eligibility for tax credits for
2 17 qualified expenditures and deduction from income received from
2 18 certain qualified expenditures under the film, television, and
2 19 video project promotion program.
2 20 The program currently does not allow salary expenditures
2 21 for directors, producers, and principal cast members to be
2 22 counted as qualified expenditures under the program. The bill
2 23 allows up to $1 million in compensation for each of these
2 24 persons to be counted toward a taxpayer's qualified
2 25 expenditures if the person is an Iowa resident or Iowa=based
2 26 business.
2 27 The program also currently allows vendors to take a
2 28 reduction in adjusted gross income for qualified expenditures
2 29 in the same year as the expenses are incurred. The bill makes
2 30 the credit available for the tax year in which the
2 31 expenditures were incurred and for three ensuing tax years.
2 32 The bill provides effective and retroactive applicability
2 33 date provisions.
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