Alabama

At least 30 days PRIOR to the start of any activities in Alabama, submit an application to the film office; within 60 days of commencing operations in Alabama, the production company must register with the Alabama Secretary of State; meet the minimum in-state spending requirement of at least $500,000; begin principal photography (anywhere) within 90 days of application approval; and submit an audit report to both the Film Office and to the Department of Revenue within 120 days of completion of production activities in Alabama, unless an extension is granted. Approved projects must show evidence of financial backing and funding.

Qualified spend includes preproduction, production, and postproduction costs incurred in the state that are directly used in a certified production; compensation, subject to the limits set forth below, including, related benefits provided to resident and nonresident producers, directors, writers, actors, and other personnel involved in certified projects within the state. Costs incurred prior to the date of the approval letter do not qualify for the incentive.

This program is not administered on a first-come, first-served basis. The film office retains the sole discretion to determine which projects are selected and the amount of incentives available to each selected project. While there is not a per project incentive cap per se, Alabama only awards the incentive on the first $20 million of qualifying production expenditures. Subject to the $20 million limitation, all payroll paid to Alabama residents will earn 35% (provided a completed Declaration of Residency form is submitted), while all other qualified production expenditures earn 25%, including the first $500,000 of each nonresident below-the-line worker (direct hire or loan out) and the first $1 million of each nonresident above-the-line worker (direct hire or loan out). All qualifying film projects approved by the Alabama Film Office are required to file a Certificate of Compliance issued by the Alabama Department of Revenue before any rebate is released for payment. The production company receives their Alabama film refund by claiming a film credit on its Alabama income tax return for the tax year in which production costs are completed. There is a state funding cap of $20 million per fiscal year (Oct. 1 – Sept. 30). A certified production spending at least $150,000 within a 12-month period may apply to be exempted from the state portion but not the local portion of sales, use, and lodging taxes. The sales tax exemption is not available on qualified expenditures in excess of the first $20 million.