Text: SSB1175            Text: SSB1177


Senate Study Bill 1176

SENATE/HOUSE FILE BY (PROPOSED DEPARTMENT OF ECONOMIC DEVELOPMENT BILL) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the eligibility for tax credits and income 2 reductions for qualified expenditures under the film, 3 television, and video project promotion program and providing 4 effective and retroactive applicability date provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1235DP 83 7 tw/mg:sc/5 PAG LIN 1 1 Section 1. Section 15.393, subsection 2, paragraph a, 1 2 subparagraph (2), Code 2009, is amended to read as follows: 1 3 (2) A qualified expenditure by a taxpayer is a payment to 1 4 an Iowa resident or an Iowa=based business for the sale, 1 5 rental, or furnishing of tangible personal property or for 1 6 services directly related to the registered project including 1 7 but not limited to aircraft, vehicles, equipment, materials, 1 8 supplies, accounting, animals and animal care, artistic and 1 9 design services, graphics, construction, data and information 1 10 services, delivery and pickup services, labor and personnel, 1 11 lighting, makeup and hairdressing, film, music, photography, 1 12 sound, video and related services, printing, research, site 1 13 fees and rental, travel related to Iowa distant locations, 1 14 trash removal and cleanup, and wardrobe. For the purposes of 1 15 this subparagraph, "labor and personnel" does not include the 1 16 director, producers, or cast members other than extras and 1 17 stand=ins. 1 18 (i) For purposes of this subparagraph, "labor and 1 19 personnel" includes compensation paid, in an amount not to 1 20 exceed one million dollars each, to the principal producer, 1 21 the principal director, and the principal cast members, 1 22 provided that the principal producer, director, or cast member 1 23 is an Iowa resident or an Iowa=based business. 1 24 (ii) The department of revenue, in consultation with the 1 25 department of economic development, shall by rule establish a 1 26 list of eligible expenditures. 1 27 Sec. 2. Section 15.393, subsection 2, paragraph c, Code 1 28 2009, is amended to read as follows: 1 29 c. For tax years beginning on or after January 1, 2007, 1 30 the tax year in which a qualified expenditure occurred, and 1 31 for the ensuing three tax years, a taxpayer may claim a 1 32 reduction in adjusted gross income not to exceed in a tax year 1 33 twenty=five percent of the amount of the qualified expenditure 1 34 for purposes of taxes imposed in chapter 422, divisions II and 1 35 III, for payments received from the sale, rental, or 2 1 furnishing of tangible personal property or services directly 2 2 related to the production of a project registered under this 2 3 section which meets the criteria of a qualified expenditure 2 4 under paragraph "a", subparagraph (2). 2 5 Sec. 3. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES. 2 6 1. The section of this Act amending section 15.393, 2 7 subsection 2, paragraph "a", applies retroactively to January 2 8 1, 2008, for tax years beginning on or after that date. 2 9 2. The section of this Act amending section 15.393, 2 10 subsection 2, paragraph "c", applies retroactively to 2 11 qualified expenditures made in tax years beginning on or after 2 12 January 1, 2008. 2 13 3. This Act, being deemed of immediate importance, takes 2 14 effect upon enactment. 2 15 EXPLANATION 2 16 This bill relates to the eligibility for tax credits for 2 17 qualified expenditures and deduction from income received from 2 18 certain qualified expenditures under the film, television, and 2 19 video project promotion program. 2 20 The program currently does not allow salary expenditures 2 21 for directors, producers, and principal cast members to be 2 22 counted as qualified expenditures under the program. The bill 2 23 allows up to $1 million in compensation for each of these 2 24 persons to be counted toward a taxpayer's qualified 2 25 expenditures if the person is an Iowa resident or Iowa=based 2 26 business. 2 27 The program also currently allows vendors to take a 2 28 reduction in adjusted gross income for qualified expenditures 2 29 in the same year as the expenses are incurred. The bill makes 2 30 the credit available for the tax year in which the 2 31 expenditures were incurred and for three ensuing tax years. 2 32 The bill provides effective and retroactive applicability 2 33 date provisions. 2 34 LSB 1235DP 83 2 35 tw/mg:sc/5.1
Text: SSB1175            Text: SSB1177