Ala. Admin. Code r. 281-3-1-.03

Current through Register Vol. 43, No. 1, October 31, 2024

Section 281-3-1-.03 - General Requirements

(1) Effective January 1, 2009, a Qualified Production Company may be entitled to receive a Rebate for certain Production Expenditures, and also may be entitled to receive an exemption from state, but not local, sales, use, and lodgings taxes.

(a) To receive a Rebate equal to 25% of the State-Certified Production's Production Expenditures, excluding payroll paid to Residents of Alabama, plus a Rebate equal to 35% of all payroll paid to Residents of Alabama for the State-Certified Production, a Qualified Production Company must incur total Production Expenditures of at least $500,000, but no Rebate shall be available for Production Expenditures incurred after the first $20,000,000 of Production Expenditures Expended in Alabama on a State-Certified Production; however, if such project is limited only to the production of a soundtrack used in a motion picture or documentary, such project may qualify provided that the Production Expenditures for the soundtrack project equal or exceed $50,000, but no Rebate shall be available for Production Expenditures incurred after the first $300,000 of Production Expenditures Expended in Alabama on a State-Certified Production. In addition, if such project is limited only to the production of a music video, such project may qualify provided that the Production Expenditures for the soundtrack project equal or exceed $50,000, but no Rebate shall be available for Production Expenditures incurred after the first $200,000 of Production Expenditures Expended in Alabama on a State-Certified Production.

(b) For purposes of Paragraph (l)(a) above, in determining the total Production Expenditures incurred by a Qualified Production Company on a Qualified Production, the total Production Expenditures of a series of commercials to be filmed within a period of 12 consecutive months, each of which separately and independently meets the definition of a Qualified Production, may be aggregated to meet the monetary requirements of Paragraph 1(a) above as long as each individual commercial within the series pertains to the same subject as the other commercials in the series and was planned as part of a series of commercials to be filmed within a period of 12 consecutive months at the time the Applicant applied for Incentives, provided however that the amount of Incentives granted shall be consistent with the provisions of Ala. Admin. Code r. 281-3-1-.04(1)(d).

1. Example. During calendar year 2011, a Qualified Production Company is scheduled to film a series of 5 commercials, all of which relate to the same subject. The Qualified Production Company incurs Production Expenditures of $100,000 on each commercial. The Production Expenditures for each individual commercial would not independently satisfy the minimum Production Expenditure requirements of Paragraph (l)(a), above. However, for purposes of determining whether the Qualified Production Company has incurred Production Expenditures of at least $500,000, the Production Expenditures of each commercial in the series may be aggregated. Therefore, the Qualified Production Company's aggregate Production Expenditures for the series of commercials would be $500,000, and would meet the minimum Production Expenditure requirement set forth in Paragraph (1)(a) above.

(c) A single episode in a television series or miniseries may be considered a single Qualified Production for purposes of determining the total Production Expenditures incurred by a Qualified Production Company on a Qualified Production for purposes of Paragraph (1)(a) above. However, in determining the total Production Expenditures incurred by a Qualified Production Company on a Qualified Production, the total Production Expenditures of a television series or miniseries, whether a single or multiple seasons thereof, to be filmed within a period of 12 consecutive months, each individual episode of which separately and independently meets the definition of a Qualified Production, may be aggregated to meet the monetary requirements of Paragraph (1)(a) above, as long as each individual episode within the series pertains to the same subject as the other episodes in the same series. The Office may, at its discretion, grant Incentives to a Qualified Production Company for multiple episodes of a television series at one time, provided however that the amount of Incentives granted shall be consistent with the provisions of Ala. Admin. Code r. 281-3-1-.04(1)(d).

(d) The Qualified Production Company must meet the requirements of any Incentives applied for, and must receive written certification acknowledging its approval for any Incentives from the Office.

(e) To be exempt from state sales, use, and lodgings taxes, a Qualified Production Company must spend, in the aggregate, $150,000 or more in connection with State-Certified Productions in Alabama within a consecutive 12 month period. The exemption from state sales, use, and lodgings taxes provided by Code of Ala. 1975, § 41-7A-45 shall not be available for Production Expenditures incurred by a Qualified Production Company after the first $20,000,000 of Production Expenditures Expended in Alabama on a State-Certified Production.

Ala. Admin. Code r. 281-3-1-.03

New Rule: Filed August 13, 2012; effective September 17, 2012.

Amended by Alabama Administrative Monthly Volume XXXIII, Issue No. 05, February 27, 2015, eff. 3/19/2015.

Author: Department of Commerce/Alabama Film Office

Statutory Authority:Code of Ala. 1975, §§ 41-7A-40 through -48.