ARC 0140D

ARC 0140D

ECONOMIC DEVELOPMENT AUTHORITY[261]

Adopted and Filed

Rulemaking related to Iowa film production incentive program

    The Economic Development Authority hereby adopts new Chapter 300, “Iowa Film Production Incentive Program and Fund,” Iowa Administrative Code.

Legal Authority for Rulemaking

    This rulemaking is adopted under the authority provided in Iowa Code section 15.106A.

State or Federal Law Implemented

    This rulemaking implements, in whole or in part, Iowa Code section 15.517.

Purpose and Summary

    Pursuant to Iowa Code section 15.517 as enacted by 2025 Iowa Acts, Senate File 657, the Authority is adopting Chapter 300. The chapter describes the policies and procedures applicable to the Iowa Film Production Incentive Program. The program provides rebates to qualified production facilities to produce qualified productions in the State of Iowa. The chapter sets forth eligibility requirements, application procedures and review processes for the program. 

Public Comment and Changes to Rulemaking

    Notice of Intended Action for this rulemaking was published in the Iowa Administrative Bulletin on December 24, 2025, as ARC 9827C.

    Kristian Day, filmmaker, suggested that commercial film production should be eligible for the program. Mr. Day suggested that excluding the costs of renting facilities owned, managed, or operated by an applicant, or by an associated entity of the applicant, from being qualified expenses should be revisited. Mr. Day further suggested that an additional rebate or incentive should be offered for hiring crews or resources in depressed areas. Mr. Day also encouraged the Authority to reach out to guilds and trade organizations. The Authority determined that the changes suggested were not consistent with the statute authorizing the program or with the intent of the program.

    Colleen Krantz, filmmaker, commented that she appreciated that the definition of qualified production facility does not only refer to buildings. Ms. Krantz requested clarification on the term “qualified production facility certificate” utilized in the rules, whether producers could jointly meet the requirements of the program, and when principal photography is considered to have started. Ms. Krantz recommended that free streaming services be considered an eligible distribution option. Ms. Krantz further suggested the requirement that all funding for a production be in place should be flexible. Additional information about the program was provided to Ms. Krantz, but the Authority did not identify any changes that could be made to the rules that were consistent with the statute authorizing the program or with the intent of the program.

    A change from the Notice has been made to remove references to 2025 Iowa Acts, Senate File 657, since that legislation has been codified in the 2026 Iowa Code.

Adoption of Rulemaking

    This rulemaking was adopted by the Authority Board on February 20, 2026.

Fiscal Impact

     This rulemaking has no fiscal impact to the State of Iowa beyond that of the legislation it is intended to implement.

Jobs Impact

    After analysis and review of this rulemaking, no impact on jobs has been found.

Waivers

    Any person who believes that the application of the discretionary provisions of this rulemaking would result in hardship or injustice to that person may petition the Authority for a waiver of the discretionary provisions, if any, pursuant to 261—Chapter 199.

Review by Administrative Rules Review Committee

    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).

Effective Date

    This rulemaking will become effective on April 22, 2026.

    The following rulemaking action is adopted:

    ITEM 1.  Adopt the following new 261—Chapter 300:

CHAPTER 300

IOWA FILM PRODUCTION INCENTIVE PROGRAM AND FUND

261—300.1(15) Purpose. The Iowa film production incentive program and the Iowa film production incentive fund are created pursuant to and for the purposes stated under Iowa Code section 15.517.

261—300.2(15) Definitions.

    “Applicant” means a qualified production facility that is applying for a rebate under the program.

    “Authority” means the Iowa economic development authority.

    “Capital expenditure” means money spent to purchase or maintain fixed assets or tangible personal property, including information technology systems, having a useful life of more than one year.

    “Certified public accountant” means the same as defined in Iowa Code section 542.3.

    “Fringes” means payroll fees (excluding taxes), union and guild fees, insurance benefits, and worker’s compensation, specific to the production for which an applicant is applying for a program rebate.

    “Iowa business” means a business registered and in good standing with the Iowa secretary of state.

    “Postproduction” means the activities preparing the film or television program for final showing, including editing and sound design.

    “Preproduction” means activities enabling the start of principal photography in Iowa, including hiring local cast and crew and final location scouting.

    “Principal photography” means the production phase in which the bulk of shooting takes place.

    “Program” means the Iowa film production incentive program created pursuant to Iowa Code section 15.517.

    “Qualified expenditure” means the same as defined in Iowa Code section 15.517 and meeting the criteria in rule 261—300.5(15).

    “Qualified production” means the same as defined in Iowa Code section 15.517.

    “Qualified production facility” means the same as defined in Iowa Code section 15.517.

    “Rebate” means a rebate disbursed to a recipient pursuant to Iowa Code section 15.517 after the recipient complies with all of the reporting requirements under rule 261—300.6(15).

    “Recipient” means a qualified production facility that has been awarded a program rebate.

    “Studio” means a company that produces and has a dedicated physical space for the production of video entertainment.

261—300.3(15) Eligible applicants. An applicant must be a qualified production facility producing a qualified production and meeting the following criteria:

    300.3(1) The production will have a total production budget of at least $1,000,000, including a minimum of $500,000 in qualified expenditures.

    300.3(2) The production will be made available to the public for viewing at a venue where admission is charged or made available for purchase, for rental, or through a streaming service that requires a subscription.

    300.3(3) Principal photography has not started as of the date of the application submission.

    300.3(4) If applying for more than one qualified production, only one application per production is submitted.

    300.3(5) The production must be a feature film, television series, documentary or unscripted series.

261—300.4(15) Application process.

    300.4(1) Applicants applying for the first time under the program, or as otherwise required by the authority, must submit a qualified production facility certification in the form and content prescribed by the authority as part of the application process.

    300.4(2) Applicants must electronically file their program application in the form and content prescribed by the authority.

    300.4(3) Applications will be reviewed by the authority for award of a program rebate. Payment of the rebate will be made only after completion of the applicant’s qualified production and submission of the materials specified in rule 261—300.6(15).

    300.4(4) Factors the authority may consider when reviewing an application include:

    a.  Extent to which the applicant will participate in training, education, and recruitment programs that are organized in cooperation with interested Iowa colleges and universities and that are designed to promote and encourage the training and hiring of Iowa residents.

    b.  Whether the rebate will incentivize the applicant to choose an Iowa location for its production over an out-of-state location.

    c.  Likelihood that approval of the rebate will result in an overall long-term positive impact to Iowa.

    300.4(5) Based on the review process and subject to available funding, the authority may revise an applicant’s overall funding request.

    300.4(6) The authority will notify successful applicants in writing of their approved application for a rebate and prepare an agreement that reflects the terms of the award. A recipient must execute and return the agreement to the authority within 30 days of the transmittal of the final agreement from the authority. Failure to do so may result in the termination of the award by the authority.

261—300.5(15) Qualified expenditures.

    300.5(1) Qualified expenditures are expenditures incurred for industry standard preproduction, production and post-production expenses paid to Iowa businesses or to production personnel, crew and cast physically working on the production in Iowa. Qualified expenditures include:

    a.  Wages and fringes for personnel, crew and cast members.

    b.  Equipment rentals.

    c.  Equipment purchases, not to exceed $5,000 per unit.

    d.  Rental of facilities, including other studio production facilities, located within the boundaries of Iowa that are not owned, managed or operated by the applicant or by a subsidiary, parent, affiliated or associated entity of applicant.

    e.  Hospitality services.

    f.  Certified public accountant services.

    g.  Per diem payments.

    h.  Accommodations within the boundaries of Iowa and certified in compliance with Iowa Code section 80.45A.

    i.  Transportation, limited to mileage at standard Internal Revenue Service (IRS) rates and rental fees paid to Iowa businesses and full-time Iowa residents for vehicle rentals.

    j.  Fees for submission to film festivals in Iowa.

    k.  Temporary set-based construction.

    l.  Services that directly support standard preproduction, production and postproduction expenses (e.g., security, police, fire services).

    300.5(2) Qualified expenditures do not include:

    a.  Entertainment.

    b.  Airfare.

    c.  Royalties.

    d.  Publicity.

    e.  Compensation paid to employees with a financial interest in the recipient entity.

    f.  Permanent facility-based construction.

    g.  Capital expenditures.

    h.  Sales, use and hotel and motel taxes.

261—300.6(15) Reporting requirements and rebate.

    300.6(1) A recipient shall complete and submit all reports required by the program agreement. A recipient shall submit any information requested by the authority in sufficient detail to permit the authority to prepare any reports required by the authority, the general assembly or the governor’s office.

    300.6(2) The maximum rebate paid to a recipient will equal 30 percent of the recipient’s documented qualified expenditures. The rebate amount shall not exceed the award amount specified in the notice of award and the program agreement unless otherwise agreed to by the authority in writing. Any decision by the authority on the rebate amount shall be made in the sole discretion of the authority and shall be final.

These rules are intended to implement Iowa Code section 15.517.

[Filed 2/26/26, effective 4/22/26]

[Published 3/18/26]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 3/18/26.