Alabama § 41-7A-43 - (Repealed by Act 2023-546, § 9, Effective December 31, 2028, Unless Extended by Act of Legislature) Rebates for Qualified Production Companies.

§ 41-7A-43. (Repealed by Act 2023-546, § 9, Effective December 31, 2028, Unless Extended by Act of Legislature) Rebates for Qualified Production Companies.

(a) Beginning January 1, 2009, a qualified production company shall be entitled to a rebate for production expenditures, as defined in Section 41-7A-42, related to a state-certified production. The rebate shall be equal to 25 percent of the state-certified production’s production expenditures excluding payroll paid to residents of Alabama plus 35 percent of all payroll paid to residents of Alabama for the state-certified production, provided the total production expenditures for a project must equal or exceed at least five hundred thousand dollars ($500,000), but no rebate shall be available for production expenditures incurred after the first twenty million dollars ($20,000,000) of production expenditures expended in Alabama on a state-certified production.

(b) Each year, the office may reserve up to two million dollars ($2,000,000) for small budget qualified productions. A qualified production company shall be entitled to a rebate equal to 45 percent of payroll paid to residents of Alabama for the state-certified production, provided the total production expenditures for such small budget qualified production must equal to or exceed at least one hundred thousand dollars ($100,000), but shall not be available if the total production expenditures exceed four hundred ninety-nine thousand nine hundred ninety-nine dollars ($499,999).

(c) A single episode in a television series or miniseries may be considered a single production project for purposes of this section. 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 season 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 set forth in subsection (a) as long as each individual episode within the series pertains to the same subject as the other episodes in the series.

(d) A single commercial may be considered a single production project for purposes of this section. However, 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 set forth in subsection (a) 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 qualified production company applied for the incentives.

(e) A qualified production company shall be entitled to the rebate for production expenditures as provided in subsection (a) for a qualified project that is limited only to the production of a soundtrack used in a motion picture or documentary, provided that the production expenditures for the soundtrack project must equal or exceed at least thirty thousand dollars ($30,000), but no rebate shall be available for production expenditures incurred after the first two hundred thousand dollars ($200,000) of production expenditures expended in Alabama.

(f) A qualified production company shall be entitled to the rebate for production expenditures as provided in subsection (a) for a qualified project that is limited only to the production of a music video, provided that the production expenditures for the music video equal or exceed thirty thousand dollars ($30,000), but no rebate shall be available for production expenditures incurred after the first two hundred thousand dollars ($200,000) of production expenditures expended in Alabama.

(g) A qualified production company shall be entitled to the rebate for production expenditures as provided in subsection (a) for a qualified project that is limited only to the production of a music album, provided that the production expenditures for the music album equal or exceed thirty thousand dollars ($30,000), but no rebate shall be available for production expenditures incurred after the first two hundred thousand dollars ($200,000) of production expenditures expended in Alabama.

(h) The rebate described in this section may be applied to offset any income tax liability applicable to a qualified production company for the tax year in which production activity in Alabama on the state-certified production concludes.

(i) If the rebate available under this section exceeds a qualified production company’s Alabama income tax liability for the tax year in which production activity in Alabama concludes on the state-certified production, the excess of the rebate over a qualified production company’s Alabama income tax liability shall be rebated to the qualified production company.

(j) The Department of Commerce and the Commissioner of the Department of Revenue shall adopt rules necessary to administer this section.