Tax Incentives

Ross Bridge Golf Course
Image by David Mark from Pixabay


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This program is 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 earn 35%, while all other qualified production expenditures earn 25%, including the first $500,000 of each nonresident below-the-line (direct hire or loan out).  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 exemption is not available on qualified expenditures in excess of the first $20 million.

Qualified spend includeds:  preproduction, production, and postproduction costs incurred in the state that are directly used in a certified production; all salaries, wages, and other compensation including, but not limited to, compensation and related benefits provided to resident and nonresident producers, directors, writers, actors, and other personnel involved in certified projects within the state.  Marketing and distribution expenses do not qualify.

Act2009-144
Act2011-695
Act2012-212