SB290 Alabama 2012 Session

Summary

Primary Sponsor

Gerald O. Dial

Republican

Session

Regular Session 2012

Title

Economic Development, entertain industry incentives, qualifed production project, qualified expenditure available for rebate or exemption increased, Sec. 41-7A-43, 41-7A-48, am'd; Act 2011-695, 2011 Reg. Sess., am'd

Summary

SB290 would raise the limits on the Alabama entertainment tax incentives by increasing the eligible spending cap and the annual incentive cap for qualified productions.

What This Bill Does

It amends the Entertainment Industry Incentives Act to raise the maximum production expenditures that can qualify for rebates and to increase the annual cap on incentives. The rebate formula stays the same: 25% of state-certified production expenditures (excluding Alabama resident payroll) plus 35% of Alabama resident payroll, with a minimum total expenditure of $500,000. It also expands how much money can be spent and still receive rebates, and increases the total incentives available each fiscal year over time (culminating in higher later-year caps). The bill clarifies aggregation rules for TV series episodes and commercials, sets separate thresholds for soundtrack and music video projects, allows rebates to offset income tax liability in the year the production concludes, and instructs the Department of Revenue to issue implementing rules.

Who It Affects

• Qualified production companies in Alabama that file for rebates and may qualify for larger rebates under higher expenditure and cap limits.
• Alabama state finances and taxpayers, since higher incentive caps could affect overall tax offsets and the budget; the Department of Revenue and related offices will administer the program.

Key Provisions

• Rebates equal 25% of non-Alabama payroll expenditures plus 35% of Alabama payroll for state-certified productions; minimum total expenditures of $500,000; rebates capped after a certain expenditure ceiling listed in the bill (referencing $10,000,000 and $20,000,000 in the text).
• Aggregate incentive cap increases by fiscal year: $5,000,000 (FY 2009), $7,500,000 (FY 2010), $10,000,000 (2011 onward), $15,000,000 (2013), $20,000,000 (2014), and $25,000,000 for all subsequent years.
• TV series/miniseries and commercials may be aggregated across a 12-month period to meet expenditure thresholds if each episode/commercial relates to the same subject.
• Soundtrack-only projects: rebates require at least $50,000 in expenditures and are capped after $300,000; Music video-only projects: rebates require at least $50,000 and are capped after $200,000.
• Rebates can offset income tax liability in the tax year when the production activity in Alabama concludes.
• The Commissioner of the Department of Revenue and the relevant office will issue rules to administer the section.
• The act becomes effective immediately after passage and approval by the Governor.

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