H.F. 2662 Section 1. NEW SECTION . 15.490 Iowa film production 1 incentive program. 2 1. As used in this section: 3 a. “Fund” means the Iowa film production incentive fund. 4 b. “Program” means the Iowa film production incentive 5 program. 6 c. “Qualified expenditure” means an allowed expense, as 7 determined by the authority by rule, that is incurred by a 8 qualified production facility on or after July 1, 2024, but 9 before July 1, 2026, for producing a qualified production. 10 d. “Qualified production” means a feature film, television 11 series, documentary, or unscripted series that is rated G, PG, 12 PG-13, or R by the classification and ratings administration of 13 the motion picture association of America or the TV parental 14 guidelines monitoring board. 15 e. “Qualified production facility” or “facility” means any 16 of the following: 17 (1) A dedicated studio located in this state at which 18 qualified productions can be produced. 19 (2) A studio located in this state at which all 20 preproduction and film production take place for a qualified 21 production filmed on location in this state. 22 2. a. The authority shall establish and administer an Iowa 23 film production incentive program for the purpose of providing 24 rebates to qualified production facilities for qualified 25 expenditures. 26 b. The authority shall establish eligibility criteria for 27 the program by rule. 28 (1) The eligibility criteria for qualified production 29 facilities must require that a facility have all of the 30 following: 31 (a) A soundstage with dimensions covering at least twelve 32 thousand five hundred square feet of floor space. 33 (b) A permanent grid system or an alternative rigging 34 support structure rated for overhead suspension, or on-site 35 -1- LSB 6301HV (3) 90 jm/ko 1/ 5

H.F. 2662 resources for fly rigging. 1 (c) Production and postproduction sound rooms that are 2 sound treated to meet sound engineer-approved ambient noise 3 level ratings. 4 (d) Electric service from an electric utility, or 5 sufficient electric service that does not require use of an 6 electric generator. 7 (e) An agreement between the authority and the facility that 8 the phrase “filmed in Iowa” appears at the beginning of any 9 credits in the qualified production. 10 (2) The eligibility criteria for a qualified production 11 must include: 12 (a) A production budget of at least one million dollars and 13 evidence the production budget is fully funded. 14 (b) Availability to the public for viewing at a venue where 15 admission is charged, or availability for purchase, for rental, 16 or through a streaming service that requires a subscription. 17 (3) The eligibility criteria for qualified expenditures 18 must include the following: 19 (a) The requirements for substantiation of and submission 20 of expenses for industry standard activities including expenses 21 for cast members, equipment, studio production facilities, 22 hospitality services, certified public accountant services, 23 per diem payments, payments to businesses located in this 24 state, accommodations, and any other expenses allowed by the 25 authority. Qualified expenditures shall not include expenses 26 for entertainment, studio executive airfare, royalties, and 27 publicity for the qualified production. 28 (b) Written acknowledgment by the qualified production 29 facility that no qualified expenses were incurred prior to 30 approval of the application by the authority. 31 3. An application for a rebate under the program shall be 32 submitted by a qualified production facility to the authority 33 for approval in the form and manner prescribed by the authority 34 by rule. 35 -2- LSB 6301HV (3) 90 jm/ko 2/ 5

H.F. 2662 4. a. If a qualified production facility’s application 1 is approved by the authority, the maximum rebate paid to the 2 facility under the program shall equal thirty percent of the 3 facility’s qualified expenditures excluding any sales, use, and 4 hotel and motel taxes paid. 5 b. Prior to disbursement of the rebate, a qualified 6 production facility shall submit all of the following to the 7 authority at the expense of the facility: 8 (1) An examination of the qualified expenditures completed 9 by a certified public accountant as defined in section 542.3 in 10 accordance with the currently effective statements on standards 11 for attestation engagements established by the American 12 institute of certified public accountants. 13 (2) A statement of the final amount of qualified 14 expenditures. 15 (3) Any other information the authority deems necessary to 16 ensure compliance with this section. 17 5. a. An Iowa film production incentive fund is created 18 in the state treasury under the control of the authority. The 19 fund shall consist of moneys appropriated to the authority and 20 any other moneys available to, obtained by, or accepted by the 21 authority for placement in the fund. The fund shall be used to 22 provide rebates under the program. 23 b. The cumulative value of rebates claimed each fiscal year 24 by qualified production facilities pursuant to this section 25 shall not exceed five million dollars. 26 c. Notwithstanding section 8.33, moneys in the fund 27 that remain unencumbered or unobligated at the close of the 28 fiscal year shall not revert but shall remain available for 29 expenditure for the purposes designated until the close of 30 the succeeding fiscal year. Notwithstanding section 12C.7, 31 interest or earnings on moneys in the fund shall be credited 32 to the fund. 33 6. The authority shall not use more than five percent of 34 the moneys in the fund at the beginning of each fiscal year for 35 -3- LSB 6301HV (3) 90 jm/ko 3/ 5

H.F. 2662 purposes of administrative costs, technical assistance, and 1 other program support. 2 7. The authority shall adopt rules pursuant to chapter 17A 3 to administer this section. 4 8. This section is repealed July 1, 2026. 5 Sec. 2. CODE EDITOR DIRECTIVE. The Code editor shall 6 designate section 15.490, as enacted in this Act, as part 31 7 of chapter 15, subchapter II. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 This bill establishes the Iowa film production incentive 12 program (program) and fund within the department of economic 13 development authority (authority). 14 The bill requires the authority to administer the program 15 for the purpose of providing rebates to qualified production 16 facilities for qualified expenditures incurred to produce a 17 qualified production. 18 The bill defines “qualified production” to mean a feature 19 film, television series, documentary, or unscripted series that 20 is rated G, PG, PG-13, or R by the motion picture film rating 21 system or by the TV parental guidelines monitoring board. 22 The bill defines “qualified production facility” (facility) 23 to mean a dedicated studio located in this state that is able 24 to produce qualified productions, or a studio located in this 25 state at which all preproduction and film production take place 26 for a qualified production filmed on location in this state. 27 The bill requires the authority to establish eligibility 28 criteria by rule. 29 The eligibility criteria for qualified production facilities 30 must require that a facility have a soundstage with dimensions 31 covering at least 12,500 square feet, a permanent grid system 32 or an alternative rigging support structure rated for overhead 33 suspension, production and postproduction sound rooms, 34 sufficient electric service that does not require use of an 35 -4- LSB 6301HV (3) 90 jm/ko 4/ 5

H.F. 2662 electric generator, and an agreement between the authority and 1 the facility that the phrase “filmed in Iowa” appears at the 2 beginning of any credits. 3 The eligibility criteria for a qualified production must 4 include a fully funded production budget of at least $1 5 million, and the qualified production must be made available to 6 the public for purchase. 7 The eligibility criteria for qualified expenditures 8 must include expenses for industry standard activities 9 for cast members, equipment, studio production facilities, 10 hospitality services, certified public accountant services, 11 per diem payments, payments to businesses located in this 12 state, accommodations, and any other expenses allowed by the 13 authority. Qualified expenditures do not include expenses 14 for entertainment, studio executive airfare, royalties, and 15 publicity for the qualified production. The eligibility 16 criteria for qualified expenditures must include a written 17 acknowledgment by the facility that no qualified expenses were 18 incurred prior to approval of the application by the authority. 19 Prior to disbursement of the rebate, the facility must 20 comply with additional requirements as detailed in the bill. 21 The bill provides that the rebate amount shall equal 30 22 percent of the gross amount of qualified expenditures incurred 23 to produce a qualified production excluding any sales, use, and 24 hotel and motel taxes paid. 25 The bill creates an Iowa film production incentive fund in 26 the state treasury under the control of the authority. The 27 fund shall consist of moneys appropriated to the authority and 28 any other moneys available to, obtained by, or accepted by the 29 authority for placement in the fund. 30 The cumulative value of rebates claimed pursuant to the bill 31 shall not exceed $5 million per fiscal year. 32 The bill applies to qualified expenditures incurred between 33 July 1, 2024, but before July 1, 2026. The program is repealed 34 on July 1, 2026. 35 -5- LSB 6301HV (3) 90 jm/ko 5/ 5