SB293 Alabama 2023 Session

Summary

Primary Sponsor

Garlan GudgerSenator

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-43, 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 allow for the inclusion of music and virtual reality as qualified production companies; to define a "historic location," and to increase the current cap of the incentive.

Summary

SB293 would rename and expand Alabama's entertainment incentive program to the Film and Music Incentive Act of 2023, adding music and virtual reality, defining historic locations, and increasing annual caps to attract more film, TV, and music production in the state.

What This Bill Does

It broadens eligibility to include music and virtual reality productions as qualified productions and creates new terms like historic location and qualified production facilities. It offers rebates equal to 25% of production expenditures plus 35% of Alabama resident payroll, with a minimum spend of $500,000 and yearly caps that rise from $20 million (through 2023) to $65 million (2024), $110 million (2025), and $150 million (2026 and beyond). It also provides a state sales/use/lodging tax exemption for qualifying expenditures, within the same annual caps, and allows rebates to offset Alabama income tax liabilities with any excess paid to the company. Special rules cover TV series/episodes, commercials, soundtracks, music albums/videos, and other eligible productions, including aggregation rules and caps for music-related projects. Administration is assigned to the Alabama Film Office and the Department of Revenue, with rules to be adopted; a portion of the cap is reserved for productions at historic locations, and unallocated funds can be carried forward to future years.

Who It Affects

• Qualified production companies (including music and VR projects) that meet expenditure and payroll thresholds and may receive rebates and tax exemptions.
• Alabama residents who work on qualified productions, who may benefit from increased payroll incentives.
• The Alabama Film Office and the Department of Revenue, which would administer rebates, exemptions, and related rules.
• Owners and operators of qualified production facilities, including those meeting the specified facility standards, and operators of historic location sites.
• Local governments and taxpayers, since exemptions apply to the state portion of certain taxes while local portions may still apply.

Key Provisions

• Renames the Entertainment Industry Incentive Act of 2009 to the Film and Music Incentive Act of 2023 and broadens eligibility to include music and virtual reality as qualified productions.
• Defines and expands terms: Historic Location (near Africatown Historic District and Mobile County Training School), Qualified Production Facility (multiple indoor, climate-controlled spaces and sound stages), Qualified Production, Qualified Production Company, and Production Expenditures.
• Rebates: 25% of state-certified production expenditures plus 35% of Alabama resident payroll, with a minimum expenditure of $500,000; caps on eligible expenditures by year: 2009-2023 up to $20,000,000; 2024 up to $65,000,000; 2025 up to $110,000,000; 2026 and later up to $150,000,000.
• Music and soundtrack provisions: separate rebate rules for soundtracks (minimum $50,000, cap $300,000) and for music albums/videos (minimums $20,000 and $50,000 respectively, cap $200,000) with a combined 5% annual funding limit for music-related rebates.
• Tax offset and payment: rebates can offset Alabama income tax liability in the year the production concludes; excess rebates are paid to the eligible production company.
• TV/series and commercials: aggregation rules allow multiple episodes or commercials to count toward the rebate if they pertain to the same subject, within 12-month periods.
• Tax exemptions: state portion of sales, use, and lodging taxes on production expenditures may be exempted for eligible projects, subject to the same annual caps as rebates.
• Historic-location reserved funds: beginning 2024, one-third of the annual cap is set aside for productions at historic locations with production headquarters at the facility, conditioned on certification; unused reserved amounts carry forward.
• Administration and rules: the Department of Revenue and the Alabama Film Office must issue rules to administer the act.
• Effective date and severability: act becomes effective immediately upon passage and approval; includes typical severability and repeal provisions for conflicting laws.

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