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-.07 - Payment Of The Rebate And Failure To Meet Qualifications

Current through Register Vol. 42, No. 9, June 28, 2024
(1) To the extent
			 that the Qualified Production Company has been approved for Incentives in an
			 amount exceeding the actual amount of state sales, use, and lodgings taxes that
			 would have been paid had the exemption from the same such taxes not been granted,
			 the Qualified Production Company shall be entitled to a Rebate in an amount equal
			 to the excess Incentives for which it was approved by the Office; provided that
			 the Production Expenditures actually incurred on the State-Certified Production
			 when multiplied by the appropriate percentage (i.e., 25% or 35%) for each type of
			 Production Expenditure equal or exceed the amount of Rebate for which the
			 Qualified Production Company was approved.
(2) Upon receipt of the Report, the Office
			 shall review the Report and determine the amount of the Rebate, if any, to be
			 paid. Within 45 days from the date upon which the Office determines the amount of
			 the Rebate available to the Qualified Production Company, the Office shall notify
			 the Department of the amount of any Rebate available to the Qualified Production
			 Company.
(3) A Qualified Production
			 Company shall claim its Rebate by filing its annual Alabama income tax return for
			 the tax year(s) during which production took place. The Rebate may be used to
			 offset any Alabama income tax liability of the Qualified Production Company, as
			 determined pursuant to Title 40, Chapter 18 of the
Code of Ala.
			 1975
, for the tax year(s) during which such expenditures were paid
			 or incurred, with the excess by which the Rebate exceeds the Qualified Production
			 Company's Alabama income tax liability being refunded by the Department to the
			 Qualified Production Company.
(4) The
			 Rebate may be claimed by the Qualified Production Company pursuant to the rules
			 promulgated by the Department pursuant to the Act.
(5) If the Qualified Production Company, which
			 is producing a State-Certified Production other than a music video or a
			 soundtrack to be used in a motion picture or documentary, incurs Production
			 Expenditures in excess of $500,000, but less than the amount of Production
			 Expenditures estimated in its Application, then the Office may adjust the amount
			 of "the Rebate available to the Qualified Production Company, such that the total
			 amount of the Rebate granted by the Office is reduced by the difference between
			 the total estimated Production Expenditures and the actual Production
			 Expenditures multiplied by the appropriate percentage (i.e., 25% or 35%) for each
			 type of Production Expenditure.
(6)
			 If the Qualified Production Company, which is producing a State-Certified
			 Production other than a music video or a soundtrack to be used in a motion
			 picture or documentary, incurs Production Expenditures in excess of $150,000, but
			 less than $500,000, then the Qualified Production Company shall not be liable for
			 the state sales, use, and lodgings taxes that would have been paid had the
			 exemption from the same such taxes not been granted, but the Qualified Production
			 Company shall not be entitled to any Rebate otherwise awarded to and/or set aside
			 for the Qualified Production Company.
(7) If the Qualified Production Company, which
			 is producing a State-Certified Production other than a music video or soundtrack
			 to be used in a motion picture or documentary, incurs Production Expenditures in
			 an amount less than $150,000, then the Qualified Production Company shall be
			 liable for the state sales, use, and lodgings taxes that would have been paid had
			 the exemption from the same such taxes not been granted; provided, however, that
			 if the Qualified Production Company pays the state sales, use, and lodgings taxes
			 due within 60 days of date the Report was submitted, the Qualified Production
			 Company shall incur no penalties. In addition, the Qualified Production Company
			 shall not be entitled to any Rebate otherwise awarded to and/or set aside for the
			 Qualified Production Company.
(8) In
			 the event the State-Certified Production is a music video or soundtrack to be
			 used in a motion picture or documentary ,and the Qualified Production Company
			 incurs Production Expenditures in excess of $50,000, but less than $150,000, then
			 the Qualified Production Company shall be liable for the state sales, use, and
			 lodgings taxes that would have been paid had the exemption from the same such
			 taxes not been granted, but the Qualified Production Company shall be entitled to
			 any Rebate otherwise awarded to and/or set aside for the Qualified Production
			 Company subject to an adjustment as set forth in Paragraph (5) above if the
			 Qualified Production Company incurs Production Expenditures in an amount less
			 than the amount of Production Expenditures estimated in its
			 Application.
(9) In the event the
			 State-Certified Production is a music video or soundtrack to be used in a motion
			 picture or documentary, and the Qualified Production Company incurs Production
			 Expenditures in an amount less than $50,000, then the Qualified Production
			 Company shall be liable for the state sales, use, and lodgings taxes that would
			 have been paid had the exemption from the same such taxes not been granted;
			 provided, however, that if the Qualified Production Company pays the state sales,
			 use, and lodgings taxes due within 60 days of date the Report was submitted, the
			 Qualified Production Company shall incur no penalties. In addition, the Qualified
			 Production Company shall not be entitled to any Rebate otherwise awarded to
			 and/or set aside for the Qualified Production Company.
Author:
Department of Commerce/Alabama Film
				  Office
Statutory Authority:
Code of Ala.
				  1975
, §§
										41-7A-40 through
				  -48.