Bill Summary – FastDemocracy

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
  and fund within the economic development authority.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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    Section 1. NEW SECTION. 15.490 Iowa film production
 incentive program.
    1. As used in this section:
    a. “Fund” means the Iowa film production incentive fund.
    b. “Program” means the Iowa film production incentive
 program.
    c. “Qualified expenditure” means an allowed expense, as
 determined by the authority by rule, that is incurred by a
 qualified production facility on or after July 1, 2024, but
 before July 1, 2026, for producing a qualified production.
    d. “Qualified production” means a feature film, television
 series, documentary, or unscripted series that is rated G, PG,
 PG-13, or R by the classification and ratings administration of
 the motion picture association of America or the TV parental
 guidelines monitoring board.
    e. “Qualified production facility” or “facility” means any
 of the following:
    (1) A dedicated studio located in this state at which
 qualified productions can be produced.
    (2) A studio located in this state at which all
 preproduction and film production take place for a qualified
 production filmed on location in this state.
    2. a. The authority shall establish and administer an Iowa
 film production incentive program for the purpose of providing
 rebates to qualified production facilities for qualified
 expenditures.
    b. The authority shall establish eligibility criteria for
 the program by rule.
    (1) The eligibility criteria for qualified production
 facilities must require that a facility have all of the
 following:
    (a) A soundstage with dimensions covering at least twelve
 thousand five hundred square feet of floor space.
    (b) A permanent grid system or an alternative rigging
 support structure rated for overhead suspension, or on-site
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                               H.F. 2662
 resources for fly rigging.
    (c) Production and postproduction sound rooms that are
 sound treated to meet sound engineer-approved ambient noise
 level ratings.
    (d) Electric service from an electric utility, or
 sufficient electric service that does not require use of an
 electric generator.
    (e) An agreement between the authority and the facility that
 the phrase “filmed in Iowa” appears at the beginning of any
 credits in the qualified production.
    (2) The eligibility criteria for a qualified production
 must include:
    (a) A production budget of at least one million dollars and
 evidence the production budget is fully funded.
    (b) Availability to the public for viewing at a venue where
 admission is charged, or availability for purchase, for rental,
 or through a streaming service that requires a subscription.
    (3) The eligibility criteria for qualified expenditures
 must include the following:
    (a) The requirements for substantiation of and submission
 of expenses for industry standard activities including expenses
 for cast members, equipment, studio production facilities,
 hospitality services, certified public accountant services,
 per diem payments, payments to businesses located in this
 state, accommodations, and any other expenses allowed by the
 authority. Qualified expenditures shall not include expenses
 for entertainment, studio executive airfare, royalties, and
 publicity for the qualified production.
    (b) Written acknowledgment by the qualified production
 facility that no qualified expenses were incurred prior to
 approval of the application by the authority.
    3. An application for a rebate under the program shall be
 submitted by a qualified production facility to the authority
 for approval in the form and manner prescribed by the authority
 by rule.
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    4. a. If a qualified production facility’s application
 is approved by the authority, the maximum rebate paid to the
 facility under the program shall equal thirty percent of the
 facility’s qualified expenditures excluding any sales, use, and
 hotel and motel taxes paid.
    b. Prior to disbursement of the rebate, a qualified
 production facility shall submit all of the following to the
 authority at the expense of the facility:
    (1) An examination of the qualified expenditures completed
 by a certified public accountant as defined in section 542.3 in
 accordance with the currently effective statements on standards
 for attestation engagements established by the American
 institute of certified public accountants.
    (2) A statement of the final amount of qualified
 expenditures.
    (3) Any other information the authority deems necessary to
 ensure compliance with this section.
    5. a. An Iowa film production incentive fund is created
 in the state treasury under the control of the authority. The
 fund shall consist of moneys appropriated to the authority and
 any other moneys available to, obtained by, or accepted by the
 authority for placement in the fund. The fund shall be used to
 provide rebates under the program.
    b. The cumulative value of rebates claimed by qualified
 production facilities pursuant to this section shall not exceed
 ten million dollars.
    c. Notwithstanding section 8.33, moneys in the fund
 that remain unencumbered or unobligated at the close of the
 fiscal year shall not revert but shall remain available for
 expenditure for the purposes designated until the close of
 the succeeding fiscal year. Notwithstanding section 12C.7,
 interest or earnings on moneys in the fund shall be credited
 to the fund.
    6. The authority shall not use more than five percent of
 the moneys in the fund at the beginning of each fiscal year for
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                              H.F. 2662
 purposes of administrative costs, technical assistance, and
 other program support.
    7. The authority shall adopt rules pursuant to chapter 17A
 to administer this section.
    8. This section is repealed July 1, 2026.
    Sec. 2. CODE EDITOR DIRECTIVE. The Code editor shall
 designate section 15.490, as enacted in this Act, as part 31
 of chapter 15, subchapter II.
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Statutes affected: 
Introduced: 542.3, 15.490
Reprinted: 542.3