House File 2662 - Reprinted HOUSE FILE 2662 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HSB 731) (As Amended and Passed by the House March 26, 2024 ) A BILL FOR An Act establishing the Iowa film production incentive program 1 and fund within the economic development authority. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 HF 2662 (4) 90 jm/ko/md

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- HF 2662 (4) 90 jm/ko/md 1/ 4

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- HF 2662 (4) 90 jm/ko/md 2/ 4

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 by qualified 24 production facilities pursuant to this section shall not exceed 25 ten 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- HF 2662 (4) 90 jm/ko/md 3/ 4

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 -4- HF 2662 (4) 90 jm/ko/md 4/ 4