Establishing the Iowa film production incentive program and fund within the economic development authority

This bill establishes the Iowa film production incentive program (program) and fund within the department of economic development authority (authority). The bill requires the authority to administer the program for the purpose of providing rebates to qualified production facilities for qualified expenditures incurred to produce a qualified production. The bill defines “qualified production” to mean a feature film, television series, documentary, or unscripted series that is rated G, PG, PG-13, or R by the motion picture film rating system or by the TV parental guidelines monitoring board. The bill defines “qualified production facility” (facility) to mean a dedicated studio located in this state that is able to produce qualified productions, or 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. The bill requires the authority to establish eligibility criteria by rule. The eligibility criteria for qualified production facilities must require that a facility have a soundstage with dimensions covering at least 12,500 square feet, a permanent grid system or an alternative rigging support structure rated for overhead suspension, production and postproduction sound rooms, sufficient electric service that does not require use of an electric generator, and an agreement between the authority and the facility that the phrase “filmed in Iowa” appears at the beginning of any credits. The eligibility criteria for a qualified production must include a fully funded production budget of at least $1 million, and the qualified production must be made available to the public for purchase. The eligibility criteria for qualified expenditures must include expenses for industry standard activities 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 do not include expenses for entertainment, studio executive airfare, royalties, and publicity for the qualified production. The eligibility criteria for qualified expenditures must include a written acknowledgment by the facility that no qualified expenses were incurred prior to approval of the application by the authority. Prior to disbursement of the rebate, the facility must comply with additional requirements as detailed in the bill. The bill provides that the rebate amount shall equal percent of the gross amount of qualified expenditures incurred to produce a qualified production excluding any sales, use, and hotel and motel taxes paid. The bill creates an Iowa film production incentive fund 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 cumulative value of rebates claimed pursuant to the bill shall not exceed $5 million per fiscal year. The bill applies to qualified expenditures incurred between July 1, 2024, but before July 1, 2026. The program is repealed on July 1, 2026.