State Permits and Regulations
This program is administered on a case-by-case 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) and the first $1 million of each nonresident above-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 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.
Qualified spend includes: 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.