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House
File
2661
-
Introduced
HOUSE
FILE
2661
BY
COMMITTEE
ON
ECONOMIC
GROWTH
AND
TECHNOLOGY
(SUCCESSOR
TO
HSB
728)
A
BILL
FOR
An
Act
relating
to
the
establishment
of
programs
administered
1
by
the
economic
development
authority,
including
the
2
interactive
digital
entertainment
program,
game
studio
3
investment
matching
program,
game
industry
fellowship
4
program,
and
game
studio
grant
program,
and
making
5
appropriations.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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DIVISION
I
1
INTERACTIVE
DIGITAL
ENTERTAINMENT
PROGRAM,
GAME
STUDIO
2
INVESTMENT
MATCHING
PROGRAM,
GAME
INDUSTRY
FELLOWSHIP
PROGRAM,
3
AND
GAME
STUDIO
GRANT
PROGRAM
4
Section
1.
NEW
SECTION
.
15.540
Interactive
digital
5
entertainment
tax
credit
program.
6
1.
As
used
in
this
section:
7
a.
“Fund”
means
the
interactive
digital
entertainment
8
program
fund.
9
b.
“Program”
means
the
interactive
digital
entertainment
10
program.
11
c.
“Qualified
developer”
means
a
person
that
develops
and
12
produces
qualified
productions.
13
d.
“Qualified
expenditures”
means
labor,
goods,
services,
14
and
production
costs
directly
related
to
a
qualified
15
production.
16
e.
“Qualified
production”
means
interactive
media
or
video
17
games
developed
and
produced
in
the
state.
18
2.
a.
The
authority
shall
establish
and
administer
an
19
interactive
digital
entertainment
program
for
the
purpose
of
20
awarding
tax
credits
to
qualified
developers
for
qualified
21
expenditures.
22
b.
The
authority
shall
adopt
rules
to
establish
eligibility
23
criteria
for
a
qualified
developer
to
participate
in
the
24
program
and
the
criteria
must
include
all
of
the
following:
25
(1)
The
qualified
developer
must
maintain
a
physical
26
presence
in
the
state.
27
(2)
The
qualified
developer
must
have
a
minimum
payroll
in
28
the
state
of
two
hundred
fifty
thousand
dollars.
29
3.
An
application
for
the
program
shall
be
submitted
by
a
30
qualified
developer
to
the
authority
for
approval
in
the
form
31
and
manner
prescribed
by
the
authority.
32
4.
a.
If
a
qualified
developer’s
application
is
approved
33
by
the
authority,
the
maximum
that
shall
be
awarded
to
the
34
qualified
developer
under
the
program
is
a
tax
credit
equal
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to
thirty
percent
of
the
qualified
developer’s
documented
1
qualified
expenditures,
except
as
provided
in
paragraph
“b”
.
2
b.
For
qualified
productions
that
display
a
“made
in
Iowa”
3
logo
approved
by
the
authority,
in
addition
to
the
tax
credit
4
under
paragraph
“a”
,
a
qualified
developer
may
be
awarded
an
5
additional
tax
credit
equal
to
five
percent
of
the
qualified
6
developer’s
documented
qualified
expenditures.
7
c.
Prior
to
the
authority
issuing
a
tax
credit
certificate
8
under
the
program,
a
qualified
developer
shall
submit
9
documentation
to
the
authority
for
all
qualified
expenditures
10
incurred
following
approval
of
the
qualified
developer’s
11
application
for
the
program.
12
5.
The
interactive
digital
entertainment
program
tax
credit
13
shall
be
allowed
against
taxes
imposed
under
chapter
422,
14
subchapter
II,
III,
or
V,
and
chapter
432.
15
6.
An
interactive
digital
entertainment
program
fund
16
is
created
in
the
state
treasury
under
the
control
of
the
17
authority.
The
fund
shall
consist
of
moneys
appropriated
to
18
the
authority
and
any
other
moneys
available
to,
obtained
by,
19
or
accepted
by
the
authority
for
placement
in
the
fund.
The
20
fund
shall
be
used
to
award
tax
credits
under
the
program.
21
7.
The
aggregate
value
of
all
tax
credits
awarded
by
the
22
authority
and
claimed
by
qualified
developers
under
this
23
section
shall
not
exceed
twenty
million
dollars
in
any
one
24
fiscal
year.
25
8.
Notwithstanding
section
8.33,
moneys
in
the
fund
26
that
remain
unencumbered
or
unobligated
at
the
close
of
the
27
fiscal
year
shall
not
revert
but
shall
remain
available
for
28
expenditure
for
the
purposes
designated
until
the
close
of
29
the
succeeding
fiscal
year.
Notwithstanding
section
12C.7,
30
interest
or
earnings
on
moneys
in
the
fund
shall
be
credited
31
to
the
fund.
32
9.
The
authority
shall
adopt
rules
pursuant
to
chapter
17A
33
to
administer
this
section.
34
Sec.
2.
NEW
SECTION
.
15.541
Game
studio
investment
matching
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program.
1
1.
For
purposes
of
this
section,
“private
investment”
means
2
an
investment
from
a
publisher
advance,
venture
capital,
angel
3
investor,
or
other
source
of
private
funds.
4
2.
The
authority
shall
establish
and
administer
a
game
5
studio
investment
matching
program.
The
authority
may
provide
6
a
forgivable
loan
to
an
investor
that
matches
dollar
for
dollar
7
a
private
investment
in
an
Iowa-based
game
development
company.
8
The
authority
shall
not
provide
forgivable
loans
to
investors
9
in
any
one
Iowa-based
game
development
company
that
exceed
an
10
aggregate
value
of
twenty
million
dollars
per
fiscal
year.
11
3.
Applications
for
the
game
studio
investment
matching
12
program
shall
be
submitted
to
the
authority
in
the
form
and
13
manner
prescribed
by
the
authority
by
rule.
14
4.
a.
An
investor
shall
not
be
required
to
make
a
payment
15
on
the
loan
if
the
private
investment
is
in
an
Iowa-based
16
game
development
company
that
meets
all
of
the
following
17
requirements
for
a
minimum
of
five
consecutive
years
from
the
18
date
a
forgivable
loan
is
provided
to
the
investor,
at
which
19
time
the
forgivable
loan
shall
be
forgiven
in
its
entirety:
20
(1)
Seventy-five
percent
of
the
Iowa-based
game
development
21
company’s
employees
reside
in
the
state.
22
(2)
The
Iowa-based
game
development
company
is
physically
23
headquartered
in
the
state.
24
b.
If
the
Iowa-based
game
development
company
fails
to
meet
25
the
requirements
of
paragraph
“a”
the
investor
shall
repay
the
26
forgivable
loan
in
an
amount
proportional
to
the
amount
of
time
27
the
Iowa-based
game
development
company
was
not
in
compliance
28
with
paragraph
“a”
,
as
determined
by
the
authority
by
rule.
29
5.
The
authority
shall
adopt
rules
pursuant
to
chapter
17A
30
to
administer
this
section.
31
6.
This
section
applies
to
private
investments
in
32
Iowa-based
game
development
companies
made
on
or
after
July
1,
33
2026.
34
Sec.
3.
NEW
SECTION
.
15.542
Game
industry
fellowship
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program.
1
1.
As
used
in
this
section:
2
a.
“Professional”
means
an
individual
who
does
not
reside
or
3
work
in
the
state
who
meets
all
of
the
following
requirements:
4
(1)
The
individual
has
worked
in
senior
leadership
roles
in
5
the
video
game
industry
for
a
minimum
of
ten
consecutive
years.
6
(2)
The
individual
has
shipped
at
least
three
commercial
7
video
games
while
working
in
a
senior
leadership
role.
A
8
senior
leadership
role
includes
but
is
not
limited
to
creative
9
director,
studio
head,
lead
developer,
or
executive
producer.
10
b.
“Program”
means
the
game
industry
fellowship
program.
11
2.
a.
The
authority
shall
establish
and
administer
a
12
game
industry
fellowship
program
for
the
purpose
of
providing
13
two-year
fellowships
for
professionals
to
relocate
to
the
14
state.
15
b.
The
authority
shall
administer
the
program
and
provide
16
annual
grants
for
a
minimum
of
ten
and
a
maximum
of
fifteen
17
fellowships.
18
3.
a.
A
professional
awarded
a
grant
under
the
program
19
shall
receive
a
grant
of
no
less
than
one
hundred
fifty
20
thousand
dollars
and
no
more
than
two
hundred
thousand
dollars
21
for
each
year
of
the
two-year
fellowship.
22
b.
A
grant
must
only
be
used
by
a
professional
for
any
of
23
the
following:
24
(1)
Expenses
associated
with
the
professional
relocating
25
to
the
state.
26
(2)
As
compensation
for
the
professional
to
work
in
any
of
27
the
following
areas
for
the
two-year
fellowship
period:
28
(a)
Teaching
at
community
colleges,
and
institutions
29
governed
by
the
state
board
of
regents
pursuant
to
section
30
262.7,
which
may
include
but
is
not
limited
to
developing
31
curricula
for
video
game
design,
leading
workshops
related
to
32
video
game
development,
and
mentoring
students
involved
in
33
programs
related
to
video
game
development.
34
(b)
Consulting
with
game
start-up
companies
and
studios
in
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the
state
on
game
development,
studio
management,
fundraising
1
strategy,
and
team
building.
Fellows
shall
not
provide
more
2
than
a
combined
fifty
hours
of
consulting
to
each
start-up
3
company
or
studio
in
the
state.
4
(c)
Industry
building,
including
but
not
limited
to
5
organizing
game
jams,
speaking
at
conferences,
judging
6
competitions,
and
serving
on
advisory
boards.
7
4.
A
professional
shall
not
distribute
fellowship
grant
8
funds
to
a
family
member
or
political
organization,
or
use
9
fellowship
grant
funds
for
a
personal
business
venture.
10
5.
a.
To
be
eligible
for
the
program,
a
professional
must
11
commit
to
residing
in
the
state
and
working
in
the
video
game
12
industry
for
a
minimum
of
one
additional
year
following
the
13
end
of
the
two-year
fellowship.
A
professional
that
fails
14
to
uphold
this
commitment
shall
repay
the
grant
in
an
amount
15
proportional
to
the
amount
of
the
grant
the
professional
used
16
for
expenses
associated
with
relocating
to
the
state.
17
b.
Prior
to
applying
for
the
program,
a
professional
must
18
disclose
any
potential
conflicts
of
interest
to
the
authority.
19
c.
A
review
board
consisting
of
representatives
from
the
20
authority,
community
colleges,
institutions
governed
by
the
21
state
board
of
regents
pursuant
to
section
262.7,
and
video
22
game
companies
in
the
state
shall
review
applications
for
the
23
program
and
select
professionals
for
participation
in
the
24
program.
Members
of
the
review
board
shall
disclose
to
the
25
authority
any
conflicts
of
interest.
A
member
of
the
review
26
board
shall
not
vote
on
a
program
application
submitted
by
a
27
professional
that
works
for
a
company
in
which
the
member
or
28
a
family
member
holds
a
financial
interest,
or
to
which
the
29
member
or
a
family
member
has
a
family
connection.
30
6.
A
professional
awarded
a
grant
under
the
program
shall
31
submit
quarterly
reports
to
the
authority
that
document
the
32
professional’s
work
activities
pursuant
to
subsection
3,
33
paragraph
“b”
,
subparagraph
(2),
and
independent
auditors
shall
34
review
the
quarterly
reports
and
verify
the
professional’s
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compliance
with
the
program
requirements.
If
a
professional
1
is
found
to
be
in
violation
of
subsection
3,
paragraph
“b”
,
2
subparagraph
(2),
the
professional
shall
be
required
to
repay
3
the
grant
to
the
authority.
4
Sec.
4.
NEW
SECTION
.
15.543
Game
studio
grant
program.
5
1.
As
used
in
this
section:
6
a.
“Eligible
game
studio”
means
a
game
studio
that
meets
all
7
of
the
following
requirements:
8
(1)
Seventy-five
percent
of
the
game
studio’s
employees
9
reside
in
the
state.
10
(2)
The
game
studio
is
headquartered
in
the
state.
11
b.
“Professional”
means
a
senior-level
leader
in
the
game
12
studio
industry.
13
c.
“Program”
means
the
game
studio
grant
program.
14
2.
A
game
studio
grant
program
is
established
to
provide
15
grants
to
eligible
game
studios
for
the
recruitment
of
16
professionals.
The
authority
shall
administer
the
program.
17
3.
An
eligible
game
studio
may
apply
for
a
game
studio
18
grant
under
the
program
at
the
time
that
the
eligible
game
19
studio
identifies
a
professional
as
a
candidate
for
a
position
20
with
the
eligible
game
studio
that
meets
all
of
the
following
21
requirements:
22
a.
The
position
for
which
the
professional
applied
is
a
23
director-level
position
or
higher,
including
but
not
limited
24
to
a
creative
director,
studio
director,
lead
developer,
art
25
director,
or
technical
director.
26
b.
The
professional
does
not
reside
or
work
in
the
state,
27
the
professional
has
worked
outside
of
the
state
for
a
minimum
28
of
two
consecutive
years
in
a
position
listed
under
paragraph
29
“a”
prior
to
applying
for
the
position,
and
the
professional
30
will
relocate
to
the
state
to
work
in
the
position.
31
c.
The
salary
for
the
position
is
no
less
than
one
hundred
32
twenty
thousand
dollars.
33
d.
The
professional,
as
part
of
the
hiring
process,
commits
34
to
residing
and
working
in
the
state
for
a
minimum
of
three
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consecutive
years.
1
4.
Prior
to
being
awarded
a
grant,
an
eligible
game
studio
2
accepted
into
the
program
shall
provide
to
the
authority
all
3
of
the
following:
4
a.
A
copy
of
the
offer
letter
and
employment
contract
5
associated
with
the
position
for
which
the
eligible
game
studio
6
applied
to
the
program.
7
b.
Verification
that
the
professional
for
which
the
eligible
8
game
studio
applied
to
the
program
worked
outside
of
the
state
9
for
a
minimum
of
two
consecutive
years
in
a
position
listed
in
10
subsection
3,
paragraph
“a”
,
prior
to
applying
for
the
position
11
and
has
relocated
to
the
state.
12
5.
An
eligible
game
studio
accepted
into
the
program
may
13
be
awarded
a
grant
in
an
amount
of
no
less
than
fifty
thousand
14
dollars
and
no
more
than
seventy-five
thousand
dollars
to
be
15
used
for
any
of
the
following:
16
a.
Relocation
expenses
for
the
professional,
in
an
amount
17
not
to
exceed
fifteen
thousand
dollars.
18
b.
Providing
housing
assistance
to
the
professional
for
the
19
first
year
that
the
professional
resides
in
the
state,
in
an
20
amount
not
to
exceed
twenty
thousand
dollars.
21
c.
Providing
a
salary
differential
to
match
market
rates,
in
22
an
amount
not
to
exceed
forty
thousand
dollars.
23
6.
a.
If
a
professional
hired
by
an
eligible
business
24
under
the
program
does
not
reside
and
work
in
the
state
for
the
25
entire
consecutive
three-year
period,
the
professional
shall
be
26
required
to
repay
the
amount
of
the
grant
that
the
professional
27
received
to
the
authority.
28
b.
If
a
professional
hired
by
an
eligible
business
under
the
29
program
does
not
reside
and
work
in
the
state
for
the
entire
30
consecutive
three-year
period,
the
eligible
game
studio
shall
31
be
required
to
repay
the
amount
of
the
unused
grant
funds
that
32
the
game
studio
received
to
the
authority.
33
c.
A
game
studio
that
uses
a
grant
for
purposes
that
do
not
34
comply
with
subsection
5
shall
be
required
to
repay
the
grant
35
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to
the
authority.
1
7.
a.
The
authority
shall
review
an
application
for
the
2
program
within
thirty
calendar
days
after
the
date
of
receipt
3
of
the
application.
4
b.
The
authority
shall
not
award
a
grant
to
an
eligible
5
business
for
the
hire
of
a
founder
or
executive
of
a
game
6
studio,
or
the
relative
of
a
founder
or
executive
of
a
game
7
studio.
8
8.
The
authority
shall
not
award
an
eligible
game
studio
9
more
than
three
grants
over
a
period
of
five
consecutive
years.
10
9.
A
game
studio
grant
shall
be
awarded
and
payable
to
an
11
eligible
game
studio
in
installments
as
follows:
12
a.
Upon
hire
of
a
professional,
in
an
amount
equal
to
forty
13
percent
of
the
grant
amount.
14
b.
After
the
professional
completes
one
year
of
employment,
15
in
an
amount
equal
to
thirty
percent
of
the
grant
amount.
16
c.
After
the
professional
completes
two
years
of
employment,
17
in
an
amount
equal
to
thirty
percent
of
the
grant
amount.
18
10.
The
authority
shall
conduct
an
annual
audit
of
an
19
eligible
game
studio
each
year
that
the
eligible
game
studio
20
receives
grant
funds
under
the
program
to
ensure
that
the
21
position
for
which
the
eligible
game
studio
received
a
grant
is
22
a
legitimate
director-level
or
higher
position
as
required
by
23
subsection
3,
paragraph
“a”
,
and
the
position’s
title
was
not
24
inflated
for
purposes
of
receiving
a
grant.
An
eligible
game
25
studio
found
to
have
improperly
inflated
a
position
title
in
26
order
to
receive
a
grant
shall
be
required
to
repay
the
amount
27
of
the
grant
that
the
eligible
game
studio
received
to
the
28
authority,
and
shall
be
permanently
ineligible
for
the
program.
29
Sec.
5.
NEW
SECTION
.
15.544
Rules.
30
The
authority
shall
adopt
rules
pursuant
to
chapter
17A
to
31
administer
this
part.
32
Sec.
6.
NEW
SECTION
.
15.545
Annual
reports.
33
1.
For
the
fiscal
year
beginning
on
July
1,
2026,
the
34
authority
shall
submit
a
report
to
the
general
assembly
by
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June
30,
2027,
and
by
June
30
for
each
fiscal
year
thereafter,
1
that
summarizes
for
the
immediately
preceding
fiscal
year
2
participation
in
the
interactive
digital
entertainment
program
3
under
section
15.540,
the
number
of
jobs
created
by
the
4
program,
the
economic
output
of
the
program,
and
the
fiscal
5
performance
of
the
program.
6
2.
For
each
fiscal
year
that
moneys
are
appropriated
by
7
the
general
assembly
to
the
authority
for
purposes
of
the
game
8
studio
investment
matching
program
under
section
15.541,
the
9
authority
shall
submit
a
report
to
the
general
assembly
by
June
10
30
that
summarizes,
for
the
immediately
preceding
fiscal
year,
11
participation
in
the
game
studio
investment
matching
program,
12
the
number
of
jobs
created
by
the
program,
the
economic
output
13
of
the
program,
and
the
fiscal
performance
of
the
program.
14
3.
For
each
fiscal
year
that
moneys
are
appropriated
by
15
the
general
assembly
to
the
authority
for
purposes
of
the
16
game
industry
fellowship
program
under
section
15.542,
the
17
authority
shall
submit
a
report
to
the
general
assembly
by
June
18
30
that
summarizes,
for
the
immediately
preceding
fiscal
year,
19
participation
in
the
game
industry
fellowship
program,
the
20
number
of
jobs
created
by
the
program,
the
economic
output
of
21
the
program,
and
the
fiscal
performance
of
the
program.
22
4.
For
each
fiscal
year
that
moneys
are
appropriated
by
23
the
general
assembly
to
the
authority
for
purposes
of
the
24
game
studio
grant
program
under
section
15.543,
the
authority
25
shall
submit
a
report
to
the
general
assembly
by
June
30
26
that
summarizes,
for
the
immediately
preceding
fiscal
year,
27
participation
in
the
game
studio
grant
program,
the
number
28
of
jobs
created
by
the
program,
the
economic
output
of
the
29
program,
and
the
fiscal
performance
of
the
program.
30
Sec.
7.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
is
directed
31
to
designate
section
15.540
through
section
15.545,
as
enacted
32
in
this
division
of
this
Act,
as
part
37
of
subchapter
II.
33
DIVISION
II
34
APPROPRIATIONS
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Sec.
8.
INTERACTIVE
DIGITAL
ENTERTAINMENT
PROGRAM
FUND
——
1
FY
2026-2027.
There
is
appropriated
from
the
general
fund
of
2
the
state
to
the
economic
development
authority
for
the
fiscal
3
year
beginning
July
1,
2026,
and
ending
June
30,
2027,
the
4
following
amount,
or
so
much
thereof
as
is
necessary,
to
be
5
used
for
the
purposes
designated:
6
For
deposit
in
the
interactive
digital
entertainment
program
7
fund
created
in
section
15.540:
8
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$
20,000,000
9
Notwithstanding
section
8.33,
moneys
appropriated
in
this
10
section
that
remain
unencumbered
or
unobligated
at
the
close
of
11
the
fiscal
year
shall
not
revert
but
shall
remain
available
for
12
expenditure
for
the
purposes
designated
until
the
close
of
the
13
succeeding
fiscal
year.
14
Sec.
9.
GAME
STUDIO
INVESTMENT
MATCHING
PROGRAM
——
FY
15
2026-2027.
There
is
appropriated
from
the
general
fund
of
the
16
state
to
the
economic
development
authority
for
the
fiscal
year
17
beginning
July
1,
2026,
and
ending
June
30,
2027,
the
following
18
amount,
or
so
much
thereof
as
is
necessary,
to
be
used
for
the
19
purposes
designated:
20
For
providing
forgivable
loans
from
the
game
studio
21
investment
matching
program
established
in
section
15.541:
22
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$
10,000,000
23
Sec.
10.
GAME
INDUSTRY
FELLOWSHIP
PROGRAM
——
FY
24
2026-2027.
There
is
appropriated
from
the
general
fund
of
the
25
state
to
the
economic
development
authority
for
the
fiscal
year
26
beginning
July
1,
2026,
and
ending
June
30,
2027,
the
following
27
amounts,
or
so
much
thereof
as
is
necessary,
to
be
used
for
the
28
purpose
designated:
29
For
providing
fellowships
through
the
game
industry
30
fellowship
program
established
in
section
15.542:
31
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$
2,500,000
32
Sec.
11.
GAME
STUDIO
GRANT
PROGRAM
——
FY
2026-2027.
There
33
is
appropriated
from
the
general
fund
of
the
state
to
the
34
economic
development
authority
for
the
fiscal
year
beginning
35
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July
1,
2026,
and
ending
June
30,
2027,
the
following
amounts,
1
or
so
much
thereof
as
is
necessary,
to
be
used
for
the
purposes
2
designated:
3
For
awarding
grants
under
the
game
studio
grant
program
4
established
in
section
15.543:
5
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$
2,500,000
6
EXPLANATION
7
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
8
the
explanation’s
substance
by
the
members
of
the
general
assembly.
9
This
bill
relates
to
the
establishment
of
programs
10
administered
by
the
economic
development
authority,
including
11
the
interactive
digital
entertainment
program,
game
studio
12
investment
matching
program,
game
industry
fellowship
program,
13
and
game
studio
grant
program.
14
DIVISION
I
——
INTERACTIVE
DIGITAL
ENTERTAINMENT
PROGRAM,
15
GAME
STUDIO
INVESTMENT
MATCHING
PROGRAM,
GAME
INDUSTRY
16
FELLOWSHIP
PROGRAM,
AND
GAME
STUDIO
GRANT
PROGRAM.
The
bill
17
requires
the
economic
development
authority
(authority)
to
18
establish
and
administer
an
interactive
digital
entertainment
19
tax
credit
program
(IDE
program)
to
award
tax
credits
to
20
qualified
developers
for
qualified
expenditures.
The
bill
21
defines
“qualified
expenditures”
as
labor,
goods,
services,
and
22
production
costs
directly
related
to
a
qualified
production.
23
The
authority
shall
establish
eligibility
criteria
by
rule
for
24
participation
in
the
IDE
program
that,
at
a
minimum,
requires
25
a
qualified
developer
to
maintain
a
physical
presence
in
the
26
state
and
have
a
minimum
payroll
in
the
state
of
$250,000.
27
An
application
for
the
IDE
program
shall
be
submitted
by
a
28
qualified
developer
to
the
authority
for
approval
as
prescribed
29
by
the
authority.
30
If
a
qualified
developer’s
application
is
approved,
the
31
maximum
tax
credit
that
shall
be
awarded
to
the
qualified
32
developer
shall
equal
30
percent
of
the
qualified
developer’s
33
documented
qualified
expenditures,
except
that
a
qualified
34
developer
may
receive
an
additional
tax
credit
equal
to
five
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percent
of
qualified
expenditures
for
qualified
productions
1
displaying
a
“made
in
Iowa”
logo.
Prior
to
the
authority
2
issuing
a
tax
credit
certificate,
the
qualified
developer
3
shall
submit
documentation
that
all
qualified
expenditures
4
were
incurred
following
approval
of
the
qualified
developer’s
5
application.
6
An
interactive
digital
entertainment
program
fund
(IDE
fund)
7
is
created
in
the
state
treasury
under
the
control
of
the
8
authority
consisting
of
moneys
appropriated
to
the
authority
9
and
any
other
moneys
available
to,
obtained
by,
or
accepted
10
by
the
authority
for
placement
in
the
fund.
The
fund
shall
11
be
used
to
provide
tax
credits
under
the
IDE
program.
The
12
aggregate
value
of
tax
credits
awarded
by
the
authority
and
13
claimed
by
qualified
developers
shall
not
exceed
$20
million
14
in
any
one
fiscal
year.
15
The
authority
shall
adopt
rules
to
administer
the
IDE
16
program.
17
The
bill
requires
the
authority
to
establish
and
administer
18
a
game
studio
investment
matching
program
(matching
program).
19
The
authority
may
provide
a
forgivable
loan
to
an
investor
that
20
matches
dollar
for
dollar
a
private
investment
in
an
Iowa-based
21
game
development
company
(company).
The
authority
shall
not
22
provide
forgivable
loans
to
investors
in
any
one
company
that
23
exceed
an
aggregate
value
of
$10
million
per
fiscal
year.
The
24
bill
defines
“private
investment”
as
an
investment
from
a
25
publisher
advance,
venture
capital,
angel
investor,
or
other
26
source
of
private
funds.
27
Applications
for
the
matching
program
shall
be
submitted
28
to
the
authority
in
the
form
and
manner
prescribed
by
the
29
authority
by
rule.
30
Beginning
on
the
date
a
forgivable
loan
is
provided
to
an
31
investor,
the
investor
shall
not
be
required
to
make
a
payment
32
on
the
loan
if
the
private
investment
is
in
an
Iowa-based
game
33
development
company
with
75
percent
of
employees
residing
34
in
the
state
and
the
company
is
physically
located
in
the
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state
for
a
minimum
of
five
consecutive
years,
at
which
time
1
the
forgivable
loan
shall
be
forgiven
in
its
entirety.
If
2
the
Iowa-based
game
development
company
fails
to
meet
these
3
requirements,
the
investor
shall
repay
the
forgivable
loan
in
4
an
amount
proportional
to
the
amount
of
time
the
Iowa-based
5
game
development
company
was
not
in
compliance
with
the
6
requirements,
as
determined
by
the
authority
by
rule.
7
The
authority
shall
adopt
rules
to
administer
the
matching
8
program.
The
matching
program
applies
to
private
investments
9
in
companies
made
on
or
after
July
1,
2026.
10
The
bill
requires
the
authority
to
establish
and
administer
11
a
game
industry
fellowship
program
(fellowship
program)
to
12
provide
two-year
fellowships
for
professionals
to
relocate
13
to
the
state.
“Professional”
is
defined
in
the
bill.
The
14
authority
shall
administer
the
fellowship
program
and
provide
15
grants
for
10
to
15
fellowships.
A
professional
awarded
a
16
grant
shall
receive
a
grant
of
$150,000
to
$200,000
for
each
17
year
of
the
two-year
fellowship
to
be
used
for
relocation
18
expenses
and
as
compensation
for
teaching
at
a
community
19
college
or
state
university,
consulting
for
game
start-up
20
companies
and
studios
in
the
state,
or
industry
building.
21
Grant
funds
shall
not
be
given
to
family
members,
political
22
organizations,
or
used
for
a
personal
business
venture
by
a
23
professional.
24
To
be
eligible
for
the
fellowship
program,
a
professional
25
must
commit
to
residing
in
the
state
and
working
in
the
video
26
game
industry
for
a
minimum
of
one
additional
year
following
27
the
end
of
the
fellowship.
A
professional
that
violates
the
28
residency
or
work
requirement
shall
repay
the
amount
of
the
29
grant
used
for
relocation
expenses.
Prior
to
applying
for
30
the
fellowship
program,
a
professional
shall
disclose
any
31
potential
conflicts
of
interest
to
the
authority.
A
review
32
board
as
described
in
the
bill
shall
review
applications
33
for
the
fellowship
program
and
select
professionals
for
34
participation
in
the
fellowship
program.
Members
of
the
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review
board
shall
disclose
any
conflict
of
interest
and
shall
1
not
vote
on
a
fellowship
program
application
submitted
by
a
2
professional
that
works
for
a
company
in
which
the
member
3
or
a
family
member
holds
a
financial
interest,
or
to
which
4
the
member
or
a
family
member
has
a
family
connection.
A
5
professional
awarded
a
grant
shall
submit
quarterly
reports
to
6
the
authority
that
document
the
professional’s
work
activities,
7
and
independent
auditors
shall
review
the
quarterly
reports
8
and
verify
the
professional’s
compliance
with
the
fellowship
9
program
requirements.
A
professional
found
to
be
in
violation
10
of
the
program
requirements
shall
repay
the
grant
funds
to
the
11
authority.
12
The
bill
establishes
the
game
studio
grant
program
(grant
13
program),
administered
by
the
authority,
to
provide
grants
to
14
eligible
game
studios
for
the
recruitment
of
professionals.
15
“Eligible
game
studio”
means
a
game
studio
headquartered
in
the
16
state
and
75
percent
of
the
game
studio’s
employees
reside
in
17
the
state.
“Professional”
is
defined
in
the
bill.
18
An
eligible
game
studio
may
apply
for
a
grant
under
the
19
grant
program
when
the
eligible
game
studio
identifies
a
20
professional
as
a
candidate
for
a
position,
if
the
position
is
21
a
director-level
position,
the
professional
does
not
reside
or
22
work
in
the
state,
has
not
worked
in
the
state
for
two
years,
23
and
would
move
to
the
state
for
the
position.
The
salary
for
24
the
position
must
be
at
least
$120,000,
and
the
professional
25
must
commit
to
residing
and
working
in
the
state
for
a
minimum
26
of
three
years.
Prior
to
being
awarded
a
grant,
an
eligible
27
game
studio
shall
provide
to
the
authority
the
information
28
detailed
in
the
bill.
29
An
eligible
game
studio
accepted
to
the
grant
program
may
be
30
awarded
a
grant
in
an
amount
of
$50,000
to
$75,000
per
hire
of
31
a
professional
as
detailed
by
the
bill,
paid
in
installments.
32
A
game
studio
that
uses
grant
funds
for
purposes
that
do
not
33
comply
with
the
bill
shall
be
required
to
repay
the
cost
of
34
all
or
part
of
the
grant.
If
a
professional
does
not
reside
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and
work
in
the
state
for
the
entire
three-year
period,
the
1
professional
and
the
game
studio
shall
repay
the
grant
to
the
2
authority.
3
The
authority
shall
review
applications
for
the
program
4
within
30
days
after
receipt.
The
authority
shall
not
issue
5
a
grant
for
a
founder
or
executive
of
a
game
studio,
or
the
6
relative
of
a
founder
or
executive
of
a
game
studio.
An
7
eligible
game
studio
may
receive
no
more
than
three
game
studio
8
grants
over
a
period
of
five
consecutive
years.
9
The
authority
shall
conduct
an
annual
audit
of
an
eligible
10
game
studio
to
ensure
that
the
position
for
which
the
studio
11
received
a
grant
is
a
legitimate
director-level
or
higher
12
position,
and
the
position’s
title
was
not
inflated
for
13
purposes
of
receiving
a
grant.
An
eligible
game
studio
found
14
to
have
improperly
inflated
a
position
title
to
receive
a
grant
15
shall
be
required
to
repay
the
grant
and
shall
be
permanently
16
ineligible
for
the
grant
program.
17
The
authority
shall
adopt
rules
to
administer
the
grant
18
program.
19
The
bill
requires
the
authority
to
file
annual
reports
with
20
the
general
assembly
by
June
30
of
each
year
detailing
the
21
participation,
number
of
jobs
created,
economic
output,
and
22
fiscal
performance
of
the
IDE
program,
the
matching
program,
23
the
fellowship
program,
and
the
grant
program.
24
DIVISION
II
——
APPROPRIATIONS.
For
FY
2026-2027,
there
25
is
appropriated
from
the
general
fund
of
the
state
to
the
26
authority
for
deposit
in
the
IDE
program
fund
$20
million.
27
For
FY
2026-2027,
there
is
appropriated
from
the
general
fund
28
of
the
state
to
the
authority
for
the
matching
program
$10
29
million.
For
FY
2026-2027,
there
is
appropriated
from
the
30
general
fund
of
the
state
to
the
authority
for
the
fellowship
31
program
$2.5
million.
For
FY
2026-2027,
there
is
appropriated
32
from
the
general
fund
of
the
state
to
the
authority
for
the
33
grant
program
$2.5
million.
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