Incentives
 The Iowa Film Promotion Act was passed in the Iowa legislature earlier this year and was signed into law on Thursday, May 17, 2007, by Governor Chester J. Culver. Following is an overview of the program.
PURPOSE
The purpose of the Film, Television and Video Promotion Program is to assist and encourage the production of legitimate
film, television and video projects within the state of Iowa.
OVERVIEW
- Transferable Iowa income tax credit based on 25% of qualified in-state expenditures to go to “Investor.”
- Transferable Iowa income tax credit based on 25% of qualified in-state expenditures to go to “Producer.”
- 100% income exclusion to Iowa-based companies or Iowa resident individuals for monies earned from registered projects.
ELIGIBILITY
To be eligible to receive tax credits under this program, a request for registration shall be submitted to the Iowa Department of
Economic Developemnt (IDED) by the producer.
Requests for registration of projects must be received at least one week prior to the commencement of the production activities
in the state.
The Iowa Film Office at IDED will specify the form and content of the requests, to include at least sufficient information to demonstrate the following items:
- The project is a legitimate effort to produce an entire film, television, or video episode or a film, television, or video segment in the state.
- The project will include expenditures of at least $100,000 in the state and have an economic impact on the economy of the state or locality sufficient to justify assistance under the program.
- The project will further tourism, economic development, and population retention or growth in the state or locality.
- The project is intended to be widely distributed beyond the Midwest region.
- The project will not depict or describe any obscene material, as defined in Iowa Code section 728.1.
CONTRACT ADMINISTRATION - NOTICE OF APPROVAL
Applicants will be notified in writing of approval of a request for registration, including any conditions and terms of
the approval.
QUALIFIED INVESTMENT AND EXPENDITURE TAX CREDITS - DESCRIPTION
The tax credit shall equal 25% of the qualified expenditures on a project.
Any tax credit in excess of the taxpayer’s liability for the tax year may be credited to the tax liability for the following five years or
until depleted, whichever is earlier.
A tax credit shall not be carried back to any year prior to the tax year in which the tax credit is claimed.
APPROVAL OF TAX CREDIT - REPORTING
All qualified expenditures made for a registered project must be submitted on the Schedule of Qualified Expenses, upon
completion of project spending. No additional claims will be accepted once the Schedule of Qualified Expenses has been
received by the Iowa Film Office.
APPROVAL OF TAX CREDIT - PROCESS
After verifying the eligibility for a tax credit under this program, IDED shall issue a film, television and video project promotion
program tax credit certificate to be attached to the person’s tax return.
Tax credit certificates may be transferred to any person or entity.
Tax credit certificate amounts of less $1,000 shall not be transferable.
The total number of transfers shall be limited to two.
LIMITATION
A taxpayer cannot claim both an expenditure tax credit and an investment tax credit on the same project.
CALCULATION
The total of all investment tax credits per project cannot exceed 25% of qualified expenditures on that project. This
amount will be awarded proportionately to each individual’s investment in the certified project.
REDUCTION OF GROSS INCOME
For tax years beginning on or after January 1, 2007, a reduction in adjusted gross income is allowed for payments received from the sale, rental or furnishing of tangible personal property or services directly related to the production of a project registered under this section which meet the criteria of a qualified expenditure.
A taxpayer claiming a qualified expenditure tax credit, a business in which such taxpayer has an equity interest, and a business in which such taxpayer participates in its management is not eligible to receive the adjusted gross income reduction under this section.
DEFAULT
Failure to complete the registered project in compliance with the descriptions and terms established in the approved request
for registration shall constitute a default and result in loss of tax credit benefits.
QUALIFIED EXPENDITURES
A qualified expenditure is a payment to an Iowa resident or an Iowa-based business for the sale, rental or furnishing of tangible personal property or for services directly related to the registered project including but not limited to:
- Aircraft
- Vehicles
- Equipment
- Materials
- Supplies
- Accounting
- Animals and Animal Care
- Artistic and Design Services
- Graphics
- Construction
- Data and Information Services
- Delivery and Pickup Services
- Graphics
- Labor And Personnel
- Lighting
- Makeup and Hairdressing
- Film
- Music
- Photography
- Sound
- Video and Related Services
- Printing
- Research
- Site Fees and Rental
- Travel Related To Iowa Distant Locations
- Trash Removal And Cleanup
- Wardrobe
No Permits. Film Friendly Communities.
No Location Fees on State Property.
Hotel occupancy tax waived after 31 consecutive days of stay.
DOWNLOADS
ADDITIONAL INFORMATION
For more information, please contact:
Tom Wheeler, Manager, Iowa Film Office
515.242.4726
film@iowalifechanging.com
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