H.F. _____ 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 January 1, 2025, but 9 before January 1, 2027, for producing a qualified production. 10 d. “Qualified production” means a feature film, television 11 series, documentary, or unscripted series that is rated G, 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 6301YC (10) 90 jm/ko 1/ 5

H.F. _____ 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 who are residents of this state, equipment, 22 studio production facilities, hospitality services, certified 23 public accountant services, per diem payments, payments to 24 businesses located in this state, accommodations, and any other 25 expenses allowed by the authority. Qualified expenditures 26 shall not include expenses for entertainment, studio executive 27 airfare, royalties, and 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 6301YC (10) 90 jm/ko 2/ 5

H.F. _____ 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. All qualified expenditures submitted by the qualified 6 production facility to the authority shall be audited by a 7 certified public accountant located in Iowa, at the facility’s 8 expense, and approved by the authority prior to disbursement 9 of the rebate by the authority. 10 5. a. An Iowa film production incentive fund is created 11 in the state treasury under the control of the authority. The 12 fund shall consist of moneys appropriated to the authority and 13 any other moneys available to, obtained by, or accepted by the 14 authority for placement in the fund. The fund shall be used to 15 provide rebates under the program. 16 b. The cumulative value of rebates claimed annually by 17 qualified production facilities pursuant to this section shall 18 not exceed five million dollars. 19 c. Notwithstanding section 8.33, moneys in the fund 20 that remain unencumbered or unobligated at the close of the 21 fiscal year shall not revert but shall remain available for 22 expenditure for the purposes designated until the close of 23 the succeeding fiscal year. Notwithstanding section 12C.7, 24 interest or earnings on moneys in the fund shall be credited 25 to the fund. 26 6. The authority shall not use more than five percent of 27 the moneys in the fund at the beginning of each fiscal year for 28 purposes of administrative costs, technical assistance, and 29 other program support. 30 7. The authority shall adopt rules pursuant to chapter 17A 31 to administer this section. 32 8. This section is repealed December 31, 2026. 33 Sec. 2. CODE EDITOR DIRECTIVE. The Code editor shall 34 designate section 15.490, as enacted in this Act, as part 31 35 -3- LSB 6301YC (10) 90 jm/ko 3/ 5

H.F. _____ of chapter 15, subchapter II. 1 EXPLANATION 2 The inclusion of this explanation does not constitute agreement with 3 the explanation’s substance by the members of the general assembly. 4 This bill establishes the Iowa film production incentive 5 program (program) and fund within the department of economic 6 development authority (authority). 7 The bill requires the authority to administer the program 8 for the purpose of providing rebates to qualified production 9 facilities for qualified expenditures incurred to produce a 10 qualified production. 11 The bill defines “qualified production” to mean a feature 12 film, television series, documentary, or unscripted series 13 that is rated G, PG-13, or R by the motion picture film rating 14 system or by the TV parental guidelines monitoring board. 15 The bill defines “qualified production facility” (facility) 16 to mean a dedicated studio located in this state that is able 17 to produce qualified productions, or a studio located in this 18 state at which all preproduction and film production take place 19 for a qualified production filmed on location in this state. 20 The bill requires the authority to establish eligibility 21 criteria by rule. 22 The eligibility criteria for qualified production facilities 23 must require that a facility have a soundstage with dimensions 24 covering at least 12,500 square feet, a permanent grid system 25 or an alternative rigging support structure rated for overhead 26 suspension, production and postproduction sound rooms, 27 sufficient electric service that does not require use of an 28 electric generator, and an agreement between the authority and 29 the facility that the phrase “filmed in Iowa” appears at the 30 beginning of any credits. 31 The eligibility criteria for a qualified production must 32 include a fully funded production budget of at least $1 33 million, and the qualified production must be made available to 34 the public for purchase. 35 -4- LSB 6301YC (10) 90 jm/ko 4/ 5

H.F. _____ The eligibility criteria for qualified expenditures must 1 include expenses for industry standard activities for cast 2 members who are residents of this state, equipment, studio 3 production facilities, hospitality services, certified public 4 accountant services, per diem payments, payments to businesses 5 located in this state, accommodations, and any other expenses 6 allowed by the authority. Qualified expenditures do not 7 include expenses for entertainment, studio executive airfare, 8 royalties, and publicity for the qualified production. The 9 eligibility criteria for qualified expenditures must include 10 a written acknowledgment by the facility that no qualified 11 expenses were incurred prior to approval of the application by 12 the authority. 13 The bill provides that the rebate amount shall equal 30 14 percent of the gross amount of qualified expenditures incurred 15 to produce a qualified production excluding any sales, use, and 16 hotel and motel taxes paid. 17 The bill creates an Iowa film production incentive fund in 18 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. 22 The cumulative value of rebates claimed annually pursuant to 23 the bill shall not exceed $5 million. 24 The bill applies to qualified expenditures incurred between 25 January 1, 2025, but before January 1, 2027. The program is 26 repealed on December 31, 2026. 27 -5- LSB 6301YC (10) 90 jm/ko 5/ 5