HOW MUCH DO I QUALIFY FOR?
During the application process, the state may set aside, or “earmark,” an estimated incentive amount based on your project’s budget and expected qualified Alabama expenses.
After production is complete, your project must go through the required review and audit process. Once all requirements are met and qualified expenses are verified, your project may receive up to the pre-approved incentive amount.
WHAT IF I GO OVER BUDGET, DOES THAT MONEY QUALIFY?
Not necessarily. If your project exceeds the budget submitted with your original application, you may submit an amended application for the additional expenses. Amended applications are reviewed through the standard qualification process, and additional expenses are not automatically approved.
DO OUT OF STATE HIRES QUALIFY?
It depends on the project type and incentive. Out-of-state hires may qualify for the 25% rebate for qualifying music productions and film productions with at least $500,000 in eligible expenditures, if the work is performed in Alabama and applicable Alabama tax requirements are met.
For film projects with $100,000 to $499,999 in eligible expenditures, out-of-state hires do not qualify. These projects may qualify for the 45% rebate on eligible Alabama hires only.
WHAT QUALIFIES A PERSON AS AN IN-STATE HIRE?
An in-state hire is someone who qualifies as an Alabama resident under the program rules. As part of the production’s residency documentation, the person should provide a current Alabama driver’s license or state ID and a completed Alabama Declaration of Residency form.
DOES ABOVE THE LINE TALENT COUNT?
Yes. Actors, directors, producers, and writers may qualify for the portion of their compensation tied to work performed in Alabama. This is verified during the audit process using documentation such as contracts, payroll records, and hotel receipts.
DOES POST COUNT?
Yes. Qualified post-production work performed in Alabama may count toward the rebate, including editing and other eligible post-production expenses.
DOES RENTED EQUIPMENT QUALIFY?
It depends on where the rental comes from. Equipment rented directly from an out-of-state vendor does not qualify if both the vendor and the equipment are located outside Alabama. Equipment rented through an Alabama-based rental vendor may qualify, even if the equipment is brought into Alabama, as long as the Alabama vendor meets the applicable requirements.
DO YOU RECOMMEND CREW?
Alabama’s online film directory includes local crew members who have chosen to be listed. The directory is not a complete list of all crew in Alabama, but it is a helpful starting point for productions looking to hire locally. We can also connect you with regional film offices that know local crew and vendors in their areas.
ARE PER DIEM, LIVING EXPENSES, CAR AND MEAL ALLOWANCES QUALIFIED PRODUCTION EXPENDITURES?
Yes, if they are properly documented and directly related to the qualified production. These expenses should be included in the crew member’s contract or deal memo and supported by backup documentation showing the payment was made and accepted.
ARE BOX RENTAL EXPENSES PAID TO EMPLOYEES CONSIDERED QUALIFIED PRODUCTION EXPENDITURES?
Yes. Kit or box rental expenses paid to employees may qualify if they are directly related to the production, properly documented, and paid in compliance with applicable tax requirements. The expense should be included in the employee’s contract, deal memo, invoice, or other production records.
DOES REAL ESTATE QUALIFY AS AN IN STATE PURCHASE?
No, real estate does not qualify.
WHAT OTHER INCENTIVES DOES ALABAMA OFFER?
Alabama offers a state sales, use, and lodging tax exemption for qualified productions. The exemption applies to the state portion of eligible sales, use, and lodging taxes on qualified Alabama production expenses. Local taxes are not included.
HOW DOES THE AUDIT PROCESS WORK?
After production is complete, the production company hires an independent CPA to verify its qualified Alabama production expenses. The Alabama Entertainment Office reviews the audit report and determines the final rebate amount. The production company may then claim the rebate by filing the required Alabama tax return.
During the application process, the state may set aside, or “earmark,” an estimated incentive amount based on your project’s budget and expected qualified Alabama expenses.
After production is complete, your project must go through the required review and audit process. Once all requirements are met and qualified expenses are verified, your project may receive up to the pre-approved incentive amount.
WHAT IF I GO OVER BUDGET, DOES THAT MONEY QUALIFY?
Not necessarily. If your project exceeds the budget submitted with your original application, you may submit an amended application for the additional expenses. Amended applications are reviewed through the standard qualification process, and additional expenses are not automatically approved.
DO OUT OF STATE HIRES QUALIFY?
It depends on the project type and incentive. Out-of-state hires may qualify for the 25% rebate for qualifying music productions and film productions with at least $500,000 in eligible expenditures, if the work is performed in Alabama and applicable Alabama tax requirements are met.
For film projects with $100,000 to $499,999 in eligible expenditures, out-of-state hires do not qualify. These projects may qualify for the 45% rebate on eligible Alabama hires only.
WHAT QUALIFIES A PERSON AS AN IN-STATE HIRE?
An in-state hire is someone who qualifies as an Alabama resident under the program rules. As part of the production’s residency documentation, the person should provide a current Alabama driver’s license or state ID and a completed Alabama Declaration of Residency form.
DOES ABOVE THE LINE TALENT COUNT?
Yes. Actors, directors, producers, and writers may qualify for the portion of their compensation tied to work performed in Alabama. This is verified during the audit process using documentation such as contracts, payroll records, and hotel receipts.
DOES POST COUNT?
Yes. Qualified post-production work performed in Alabama may count toward the rebate, including editing and other eligible post-production expenses.
DOES RENTED EQUIPMENT QUALIFY?
It depends on where the rental comes from. Equipment rented directly from an out-of-state vendor does not qualify if both the vendor and the equipment are located outside Alabama. Equipment rented through an Alabama-based rental vendor may qualify, even if the equipment is brought into Alabama, as long as the Alabama vendor meets the applicable requirements.
DO YOU RECOMMEND CREW?
Alabama’s online film directory includes local crew members who have chosen to be listed. The directory is not a complete list of all crew in Alabama, but it is a helpful starting point for productions looking to hire locally. We can also connect you with regional film offices that know local crew and vendors in their areas.
ARE PER DIEM, LIVING EXPENSES, CAR AND MEAL ALLOWANCES QUALIFIED PRODUCTION EXPENDITURES?
Yes, if they are properly documented and directly related to the qualified production. These expenses should be included in the crew member’s contract or deal memo and supported by backup documentation showing the payment was made and accepted.
ARE BOX RENTAL EXPENSES PAID TO EMPLOYEES CONSIDERED QUALIFIED PRODUCTION EXPENDITURES?
Yes. Kit or box rental expenses paid to employees may qualify if they are directly related to the production, properly documented, and paid in compliance with applicable tax requirements. The expense should be included in the employee’s contract, deal memo, invoice, or other production records.
DOES REAL ESTATE QUALIFY AS AN IN STATE PURCHASE?
No, real estate does not qualify.
WHAT OTHER INCENTIVES DOES ALABAMA OFFER?
Alabama offers a state sales, use, and lodging tax exemption for qualified productions. The exemption applies to the state portion of eligible sales, use, and lodging taxes on qualified Alabama production expenses. Local taxes are not included.
HOW DOES THE AUDIT PROCESS WORK?
After production is complete, the production company hires an independent CPA to verify its qualified Alabama production expenses. The Alabama Entertainment Office reviews the audit report and determines the final rebate amount. The production company may then claim the rebate by filing the required Alabama tax return.
For every type of production