SB49 Alabama 2013 Session

Updated Feb 25, 2026

Summary

Primary Sponsor: Gerald O. Dial
Republican
Session: Regular Session 2013
Title: Movies, television, and commercials, production companies, rebates for qualified expenses for amounts exceeding Alabama income tax liability, retroactive, Sec. 41-7A-43 am'd.
Summary: SB49 updates Alabama's film tax rebates, clarifies how rebates are calculated and capped, extends them retroactively, and sets rules for certain projects like TV series, commercials, soundtracks, and music videos.
What This Bill Does
It changes the rebate calculation to 25% of state-certified production expenditures excluding Alabama resident payroll plus 35% of Alabama resident payroll, with a minimum of $500,000 in expenditures and a cap after $20 million of expenditures. It allows aggregating costs across a TV series or a series of commercials if each episode or commercial qualifies and the projects stay within 12 months and the same subject. It adds special rules for soundtrack and music video productions with their own minimums and caps (soundtrack: at least $50,000 with a $300,000 cap; music video: at least $50,000 with a $200,000 cap). It lets the rebate offset the production company’s Alabama income tax liability for the year the production ends, with any excess rebate refunded to the company, and it retroactively applies to June 14, 2011; rules to administer are to be issued by the Department of Revenue.

Who It Affects
Qualified production companies that produce state-certified productions in Alabama (eligible for the rebate under the new rules, including aggregation and the new caps and minimums).
Alabama residents who work on these productions (their payroll is counted toward the 35% portion of the rebate calculations and affects how much rebate the company can claim and how tax offsets are applied).

Key Provisions
Rebate formula: 25% of production expenditures excluding Alabama resident payroll plus 35% of Alabama resident payroll, for projects with at least $500,000 and up to a $20,000,000 cap on production expenditures.
Aggregation rules: an entire TV series/miniseries or a series of commercials can be treated as one project for rebate purposes if each episode/commercial meets the definition and stays within a 12-month period with the same subject.
Soundtrack and music video exemptions: soundtrack projects must spend at least $50,000 but rebates cap after $300,000; music videos must spend at least $50,000 but rebates cap after $200,000.
Tax offset and refund: rebates can offset Alabama income tax liability in the year the production ends; any excess rebate beyond the tax liability is refunded to the production company.
Retroactivity: the act applies retroactively to June 14, 2011.
Administration: the Department of Revenue and its staff will issue rules necessary 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: Taxation