Alabama Administrative Code
Title 281 - ALABAMA DEPARTMENT OF COMMERCE, FORMERLY ALABAMA DEVELOPMENT OFFICE AND ALABAMA TOURISM DEPARTMENT/ALABAMA FILM OFFICE
Chapter 281-3-1 - ALABAMA FILM OFFICE INCENTIVES
Section 281-3-1-.03 - General Requirements
Universal Citation: AL Admin Code R 281-3-1-.03
Current through Register Vol. 42, No. 11, August 30, 2024
(1) Effective January 1, 2009, a Qualified Production Company may be entitled to receive a Rebate for certain Production Expenditures, and also may be entitled to receive an exemption from state, but not local, sales, use, and lodgings taxes.
(a) To receive a Rebate equal to 25% of the
State-Certified Production's Production Expenditures, excluding payroll paid to
Residents of Alabama, plus a Rebate equal to 35% of all payroll paid to Residents
of Alabama for the State-Certified Production, a Qualified Production Company
must incur total Production Expenditures of at least $500,000, but no Rebate
shall be available for Production Expenditures incurred after the first
$20,000,000 of Production Expenditures Expended in Alabama on a State-Certified
Production; however, if such project is limited only to the production of a
soundtrack used in a motion picture or documentary, such project may qualify
provided that the Production Expenditures for the soundtrack project equal or
exceed $50,000, but no Rebate shall be available for Production Expenditures
incurred after the first $300,000 of Production Expenditures Expended in Alabama
on a State-Certified Production. In addition, if such project is limited only to
the production of a music video, such project may qualify provided that the
Production Expenditures for the soundtrack project equal or exceed $50,000, but
no Rebate shall be available for Production Expenditures incurred after the first
$200,000 of Production Expenditures Expended in Alabama on a State-Certified
Production.
(b) For purposes of
Paragraph (l)(a) above, in determining the total Production Expenditures incurred
by a Qualified Production Company on a Qualified Production, the total Production
Expenditures of a series of commercials to be filmed within a period of 12
consecutive months, each of which separately and independently meets the
definition of a Qualified Production, may be aggregated to meet the monetary
requirements of Paragraph 1(a) above as long as each individual commercial within
the series pertains to the same subject as the other commercials in the series
and was planned as part of a series of commercials to be filmed within a period
of 12 consecutive months at the time the Applicant applied for Incentives,
provided however that the amount of Incentives granted shall be consistent with
the provisions of Ala. Admin. Code r.
281-3-1-.04(1)(d).
1. Example. During calendar year 2011, a
Qualified Production Company is scheduled to film a series of 5 commercials, all
of which relate to the same subject. The Qualified Production Company incurs
Production Expenditures of $100,000 on each commercial. The Production
Expenditures for each individual commercial would not independently satisfy the
minimum Production Expenditure requirements of Paragraph (l)(a), above. However,
for purposes of determining whether the Qualified Production Company has incurred
Production Expenditures of at least $500,000, the Production Expenditures of each
commercial in the series may be aggregated. Therefore, the Qualified Production
Company's aggregate Production Expenditures for the series of commercials would
be $500,000, and would meet the minimum Production Expenditure requirement set
forth in Paragraph (1)(a) above.
(c) A single episode in a television series or
miniseries may be considered a single Qualified Production for purposes of
determining the total Production Expenditures incurred by a Qualified Production
Company on a Qualified Production for purposes of Paragraph (1)(a) above.
However, in determining the total Production Expenditures incurred by a Qualified
Production Company on a Qualified Production, the total Production Expenditures
of a television series or miniseries, whether a single or multiple seasons
thereof, to be filmed within a period of 12 consecutive months, each individual
episode of which separately and independently meets the definition of a Qualified
Production, may be aggregated to meet the monetary requirements of Paragraph
(1)(a) above, as long as each individual episode within the series pertains to
the same subject as the other episodes in the same series. The Office may, at its
discretion, grant Incentives to a Qualified Production Company for multiple
episodes of a television series at one time, provided however that the amount of
Incentives granted shall be consistent with the provisions of Ala. Admin. Code r.
281-3-1-.04(1)(d).
(d) The Qualified Production Company must meet
the requirements of any Incentives applied for, and must receive written
certification acknowledging its approval for any Incentives from the
Office.
(e) To be exempt from state
sales, use, and lodgings taxes, a Qualified Production Company must spend, in the
aggregate, $150,000 or more in connection with State-Certified Productions in
Alabama within a consecutive 12 month period. The exemption from state sales,
use, and lodgings taxes provided by Code of Ala. 1975,
§
41-7A-45 shall not be available for
Production Expenditures incurred by a Qualified Production Company after the
first $20,000,000 of Production Expenditures Expended in Alabama on a
State-Certified Production.
Author: Department of Commerce/Alabama Film Office
Statutory Authority: Code of Ala. 1975, §§ 41-7A-40 through -48.
Disclaimer: These regulations may not be the most recent version. Alabama may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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