Ala. Admin. Code r. 281-3-1-.07

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

Section 281-3-1-.07 - Payment Of The Rebate And Failure To Meet Qualifications

(1) To the extent that the Qualified Production Company has been approved for Incentives in an amount exceeding the actual amount of state sales, use, and lodgings taxes that would have been paid had the exemption from the same such taxes not been granted, the Qualified Production Company shall be entitled to a Rebate in an amount equal to the excess Incentives for which it was approved by the Office; provided that the Production Expenditures actually incurred on the State-Certified Production when multiplied by the appropriate percentage (i.e., 25% or 35%) for each type of Production Expenditure equal or exceed the amount of Rebate for which the Qualified Production Company was approved.

(2) Upon receipt of the Report, the Office shall review the Report and determine the amount of the Rebate, if any, to be paid. Within 45 days from the date upon which the Office determines the amount of the Rebate available to the Qualified Production Company, the Office shall notify the Department of the amount of any Rebate available to the Qualified Production Company.

(3) A Qualified Production Company shall claim its Rebate by filing its annual Alabama income tax return for the tax year(s) during which production took place. The Rebate may be used to offset any Alabama income tax liability of the Qualified Production Company, as determined pursuant to Title 40, Chapter 18 of the Code of Ala. 1975, for the tax year(s) during which such expenditures were paid or incurred, with the excess by which the Rebate exceeds the Qualified Production Company's Alabama income tax liability being refunded by the Department to the Qualified Production Company.

(4) The Rebate may be claimed by the Qualified Production Company pursuant to the rules promulgated by the Department pursuant to the Act.

(5) If the Qualified Production Company, which is producing a State-Certified Production other than a music video or a soundtrack to be used in a motion picture or documentary, incurs Production Expenditures in excess of $500,000, but less than the amount of Production Expenditures estimated in its Application, then the Office may adjust the amount of "the Rebate available to the Qualified Production Company, such that the total amount of the Rebate granted by the Office is reduced by the difference between the total estimated Production Expenditures and the actual Production Expenditures multiplied by the appropriate percentage (i.e., 25% or 35%) for each type of Production Expenditure.

(6) If the Qualified Production Company, which is producing a State-Certified Production other than a music video or a soundtrack to be used in a motion picture or documentary, incurs Production Expenditures in excess of $150,000, but less than $500,000, then the Qualified Production Company shall not be liable for the state sales, use, and lodgings taxes that would have been paid had the exemption from the same such taxes not been granted, but the Qualified Production Company shall not be entitled to any Rebate otherwise awarded to and/or set aside for the Qualified Production Company.

(7) If the Qualified Production Company, which is producing a State-Certified Production other than a music video or soundtrack to be used in a motion picture or documentary, incurs Production Expenditures in an amount less than $150,000, then the Qualified Production Company shall be liable for the state sales, use, and lodgings taxes that would have been paid had the exemption from the same such taxes not been granted; provided, however, that if the Qualified Production Company pays the state sales, use, and lodgings taxes due within 60 days of date the Report was submitted, the Qualified Production Company shall incur no penalties. In addition, the Qualified Production Company shall not be entitled to any Rebate otherwise awarded to and/or set aside for the Qualified Production Company.

(8) In the event the State-Certified Production is a music video or soundtrack to be used in a motion picture or documentary ,and the Qualified Production Company incurs Production Expenditures in excess of $50,000, but less than $150,000, then the Qualified Production Company shall be liable for the state sales, use, and lodgings taxes that would have been paid had the exemption from the same such taxes not been granted, but the Qualified Production Company shall be entitled to any Rebate otherwise awarded to and/or set aside for the Qualified Production Company subject to an adjustment as set forth in Paragraph (5) above if the Qualified Production Company incurs Production Expenditures in an amount less than the amount of Production Expenditures estimated in its Application.

(9) In the event the State-Certified Production is a music video or soundtrack to be used in a motion picture or documentary, and the Qualified Production Company incurs Production Expenditures in an amount less than $50,000, then the Qualified Production Company shall be liable for the state sales, use, and lodgings taxes that would have been paid had the exemption from the same such taxes not been granted; provided, however, that if the Qualified Production Company pays the state sales, use, and lodgings taxes due within 60 days of date the Report was submitted, the Qualified Production Company shall incur no penalties. In addition, the Qualified Production Company shall not be entitled to any Rebate otherwise awarded to and/or set aside for the Qualified Production Company.

Ala. Admin. Code r. 281-3-1-.07

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.