THE INCENTIVES PROGRAM - TIP

On April 16, 2026, Governor Kay Ivey signed House Bill 379 into law, thereby amending the Entertainment Industry Incentive Act of 2009 as follows:

• Establishes a 45 percent incentive on payroll paid to Alabama residents, provided that:
  • The total production expenditures are equal to or exceed at least $100,000, but are less than $499,999;
• Reserves up to $2 million of the fiscal year funding exclusively for small budget qualified productions;
• Reduces the minimum spend requirement for soundtrack and music video projects from at least $50,000 to at least $30,000; and,
• Requires the qualified production company to withhold and remit Alabama withholding tax at the highest rate found in the withholding statutes on all payments made to the loan out company for services performed in this state.

This act shall become effective on October 1, 2026.