HOW MUCH DO I QUALIFY FOR?
During the application process the state
will “EARMARK” the said amount prior to principal
photography. After the audit process, and all qualified
expenses are verified, the production will be entitled
to the amount earmarked.
WHAT IF I GO
OVER BUDGET, DOES THAT MONEY QUALIFY?
necessarily, you are more than welcome to fill out an
amended application for your overage amounts in order to
try to qualify your overage amounts, however each
application is subject to the standard process of
qualification. DO OUT OF STATE HIRES
QUALIFY? Below the line employees, paid
through an approved payroll company, in which Alabama
income tax is collected do qualify for the 25% rebate.
DOES ABOVE THE LINE COUNT?
ACTORS, DIRECTORS, PRODUCERS & WRITERS do qualify for
the percentage of their salary that corresponds with the
amount of their job that was performed in ALABAMA. Using
hotel receipts and contracts, this amount can be
verified during the audit process. OUT OF STATE must
also be paid through the payroll company to qualify.
DOES POST COUNT ?
we encourage you to edit your project here in Alabama.
In fact any music recorded in Alabama or licensing fees
from Alabama artists also qualify for the rebate.
WHAT QUALIFIES A PERSON TO BE A IN STATE
HIRE ? A legal Alabama issued drivers
license or state ID card, with a legal Alabama address.
WHAT IS THE MINIMUM I NEED TO QUALIFY?
A production must spend a minimum of $500,000 in
Alabama labor and production costs to qualify.
IS THE RENTAL OF SPECIALIZED MOTION PICTURE
EQUIPMENT FROM A VENDOR LOCATED OUTSIDE ALABAMA (AND
WHOSE INVENTORY IS ALSO LOCATED OUTSIDE ALABAMA) A
QUALIFIED DIRECT PRODUCTION EXPENDITURE ?
No. WHAT IF THE RENTAL IS HANDLED BY AN
ALABAMA BASED RENTAL VENDOR ? Yes, in that
case, if the transaction occurs between the qualified
film production company and an Alabama based rental
business the expenditure would qualify for credit.
However, the transaction must have economic substance
and not merely be a pass through transaction.
DO YOU RECOMMEND CREW ?
currently has an online film directory that provides any
of the local crew that choose to be listed, by no means
is this list the final, however its perhaps a good
starting point for any production starting up from out
of town. ARE PER DIEM, LIVING EXPENSES,
CAR AND MEAL ALLOWANCES QUALIFIED PRODUCTION
EXPENDITURES? Yes, as long as it’s
documented contractually, and supported with back up
from the crew member accepting the money it’s a
qualified production expense. ARE BOX
RENTAL EXPENSES PAID TO EMPLOYEES CONSIDERED QUALIFIED
PRODUCTION EXPENDITURES? Yes, because they
are generally subject to taxation as required by law.
DOES REAL ESTATE QUALIFY AS AN IN STATE
PURCHASE ? No, real estate does not
qualify. WHAT OTHER INCENTIVES DOES
ALABAMA OFFER? In addition to our 25% / 35%
program Alabama also offers a tax exemption program in
which qualified productions can also utilize tax
exemption status from all Alabama based point of
purchase items, as well as state wide hotel and lodging
tax exemption. HOW DOES THE AUDIT
PROCESS WORK? After you complete principal
photography, the production will hire an approved CPA to
audit the gross receipts, contracts, and payroll audits
from a production and certify the incentive amount
that’s due back to the production. Once the audit process
is complete the production company will receive a Notice
of Rebate from the Alabama Film Office, at that point
the production company needs to file an Alabama tax
return and the money will be processed in the standard
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