HB429 Alabama 2023 Session

Summary

Primary Sponsor

Jamie KielRepresentative

Republican

Session

Regular Session 2023

Title

Relating to the Entertainment Industry Incentive Act of 2009; to amend Sections 41-7A-40, 41-7A-41, 41-7A-42, 41-7A-45, and 41-7A-48, Code of Alabama 1975, to expand the incentive by renaming it the Film and Music Incentive Act of 2023, to increase the cap on incentives to fifty million dollars annually, and to allow for the inclusion of music and virtual reality as qualified production companies.

Summary

The bill expands Alabama's entertainment incentives, renames it the Film and Music Incentive Act of 2023, adds music and virtual reality to eligible productions, and raises the annual cap to 50 million dollars.

What This Bill Does

If enacted, the bill changes the name of the program, broadens eligibility to include music projects and virtual reality content, and increases the annual incentive cap to 50 million dollars (starting in 2024; the prior years follow a defined schedule). It keeps a rebate formula of 25% of qualified production expenditures plus 35% of Alabama resident payroll, with minimum spend and per-project caps. It also adds tax exemptions and administrative rules to support the expanded program and clarifies eligibility and definitions for qualifying productions.

Who It Affects

• Qualified production companies in Alabama (including film, music, and VR/AR projects) that could receive rebates and tax exemptions for their production expenditures.
• Alabama residents who work on these productions, whose payroll contributes to the rebate calculation and who may benefit from job creation and wage retention.

Key Provisions

• Renames the act to Film and Music Incentive Act of 2023 and broadens eligible activities beyond traditional film to include music content and virtual reality/augmented reality, among other digital media formats.
• Raises the annual cap on incentives to 50 million dollars per year, with a scheduled ramp of caps through 2023 (20 million per year) and 50 million beginning in 2024 and thereafter.
• Expands what counts as a qualified production to include music albums, music videos, soundtracks, VR/AR content, interactive media, video games, digital media, and related formats, with specific thresholds and exclusions for each subcategory (e.g., music album thresholds of at least 20,000 dollars; music video thresholds of at least 50,000 dollars; soundtrack thresholds).
• Provides a rebate equal to 25% of a state-certified production's production expenditures (excluding Alabama resident payroll) plus 35% of all Alabama resident payroll, with a minimum total production expenditure of 500,000 dollars and per-project expenditure caps (not to exceed certain upper limits). Rebates can offset Alabama income tax liability, and any excess rebate is refunded.
• Implements additional per-project and annual funding controls, including a 5% annual cap on rebates relative to the total funding available for all qualified production companies, and a state sales tax exemption on state-certified production expenditures up to a specified aggregate amount per 12-month period (phasing out after higher expenditure levels.
• Defines key terms (e.g., qualified production, state-certified production, payroll, production expenditures) and designates the Alabama Film Office and the Department of Revenue as the administering bodies, with rules to be issued to manage the program.
• Repeals conflicting laws and becomes effective immediately upon passage and approval by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Entertainment Industry Incentive Act of 2009, to amend