SB255 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Cam Ward
Republican
Co-Sponsors: J.T. Waggoner Del Marsh George M. “Marc” Keahey Jimmy Holley Clay Scofield Gerald O. Dial Tom Whatley Mark Slade Blackwell
Session: Regular Session 2011
Title: Entertainment Industry Incentive Act of 2009, qualified production companies, tax rebates further provided for, tax exemptions limited to state portion of sales, use, and lodging tax, Secs. 41-7A-43, 41-7A-45 am'd.
Summary: SB255 amends Alabama's Entertainment Industry Incentive Act to expand and cap production rebates, and limit tax exemptions to the state portion of certain taxes.
What This Bill Does
It creates rebates for state-certified productions equal to 25% of non-Alabama resident production expenditures plus 35% of Alabama resident payroll, with a minimum of $500,000 in expenditures and a cap after $10,000,000. It allows aggregation of TV episodes, miniseries, and commercials within a 12-month period to meet the expenditure thresholds if they share the same subject. It sets separate rules for soundtrack projects (minimum $50,000, cap $300,000) and music videos (minimum $50,000, cap $200,000). It also provides a state tax exemption for the state portion of sales, use, and lodging taxes on qualified productions spend, with a $150,000 minimum in 12 months and a $10,000,000 cap, and allows rebates to offset income tax in the year the production ends; rules will be issued by the Department of Revenue and the Commissioner.

Who It Affects
Qualified production companies operating in Alabama (eligible for rebates and tax exemptions, subject to minimums and caps).
Alabama taxpayers and state/local governments (potential impact on state revenue due to tax exemptions and rebates).

Key Provisions
Rebate formula: 25% of state-certified production expenditures excluding Alabama resident payroll plus 35% of Alabama resident payroll; minimum $500,000 in expenditures; cap after $10,000,000.
Aggregation rules: a single TV series/miniseries or series of commercials within 12 months can be treated as a single production for rebate purposes if episodes/commercials share the same subject.
Special provisions: soundtrack projects eligible for rebates with minimum $50,000 and cap $300,000; music videos eligible with minimum $50,000 and cap $200,000.
Tax exemption: state portion of sales/use/lodging taxes exempted for expenditures of at least $150,000 in 12 months for state-certified productions, not to exceed $10,000,000 in expenditures; exemption ends after the $10,000,000 cap.
Tax offset: rebates may be applied to reduce the qualified production company's income tax for the year in which the Alabama production ends.
Administration: the Department of Revenue and the Commissioner will issue rules to administer these provisions.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Economic Development