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

Current through Register Vol. 42, No. 9, June 28, 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.