Rates & additional benefits
25% of certain Alabama production expenditures, plus 35% of Alabama-resident payroll; small-budget productions may receive 45% of Alabama-resident payroll.
Production type & commercial eligibility
Commercials included. The official Alabama Department of Revenue page expressly includes commercials among qualified productions.
Qualifying expenditure
Certain production expenditures incurred in Alabama; qualifying productions include motion pictures, television programming, videos, music videos, commercials and video games.
Labor & residency
25% applies to certain Alabama-incurred production expenditures plus 35% of payroll paid to Alabama residents; qualifying small-budget productions may receive 45% of Alabama-resident payroll. Loan-out rules were not fully stated on the retrieved page.
Application timing
Alabama Entertainment Office reviews applications for eligibility. After eligibility is established, the credit is claimed through My Alabama Taxes. An ALDOR Certificate of Compliance must be filed before rebate release.
Caps & funding conditions
Annual authorization is 20000000, increasing to 22000000 for the fiscal year ending September 30, 2026, and forward. Per-project cap not stated.
Audit requirements
ALDOR Certificate of Compliance required before rebate release; beginning October 1, 2026, loan-out companies must meet stated withholding or estimated-payment requirements.
Receiving the incentive
Income-tax rebate may offset Alabama income-tax liability; excess rebate is refundable. A sales, use and lodging tax exemption is also described.
Program dates
- Effective date
- Not stated
- Program end date
- Not stated
A program end date is not necessarily an application deadline.