Series can now qualify for 35%
Alabama has made it easier for TV producers to take advantage of the state’s aggressive financial incentives.A new law allows a TV series to be considered as one aggregated project in a 12-month period, making it eligible for refundable tax credits as high as 35 % for shooting in Alabama. The legislation, proposed by the film office, was approved without dissent and signed by Gov. Robert Bentley. Qualified production companies using the state’s incentives package are entitled to a 25% refundable tax credit for all production expenditures in Alabama. Payroll wages to Alabama residents of Alabama earn 35%. To qualify, a producing entity’s expenditures must equal or exceed $500,000 per project and not exceed $10 million. The annual cap granted to the state for incentives is $10 million dollars. In addition, a qualified production company spending at least $150,000 within a 12-month period may apply for a certificate of exemption from state sales, use and lodging tax. A 25% refundable tax credit is available for qualified music video productions, provided that the production expenditures are between $50,000 and $200,000. Plus, a 25% refundable tax credit is provided for a soundtrack production used in a motion picture if the expenditures are between $50,000 and $300,000. To further spur film production, another state agency has launched a workforce development training program. Appropriately, one of the latest shows to shoot in the state is CMT’s new dating series “Sweet Home Alabama.”
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