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?
Not 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?
Absolutely, 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 AN IN-STATE HIRE?
A legal Alabama issued driver's license or state ID card, with a legal Alabama address.
WHAT IS THE MINIMUM I NEED TO QUALIFY?
To qualify a production must spend a minimum of $500,000 in Alabama labor and production costs.
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?
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?
Alabama currently has an online film directory that provides local crew who choose to be listed. This is not a complete list, however it is 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 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 should file an Alabama tax return and the money will be processed in the standard manner.
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?
Not 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?
Absolutely, 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 AN IN-STATE HIRE?
A legal Alabama issued driver's license or state ID card, with a legal Alabama address.
WHAT IS THE MINIMUM I NEED TO QUALIFY?
To qualify a production must spend a minimum of $500,000 in Alabama labor and production costs.
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?
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?
Alabama currently has an online film directory that provides local crew who choose to be listed. This is not a complete list, however it is 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 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 should file an Alabama tax return and the money will be processed in the standard manner.
For every type of production