The bill amends sections of the Code of Alabama 1975 related to the Alabama Film Office, transferring the authority to appoint the Director of the Alabama Film Office and set their salary from the Governor to the secretary of the Alabama Department of Commerce. It removes the previous salary cap of $48,000 for the director, allowing the secretary to establish a new salary with the Governor's approval. The bill also updates the definitions and terms associated with the entertainment industry in Alabama, clarifying what is considered a qualified production and the eligibility for rebates on production expenditures. It outlines that qualified production companies can receive a 25% rebate on certain production expenditures and a 35% rebate on payroll paid to Alabama residents, with a cap on rebates for expenditures after the first $20 million spent on a state-certified production.

Furthermore, SB286 specifies that qualified production companies are entitled to a rebate for production expenditures after the first $300,000 spent in Alabama, including music video productions that meet a minimum expenditure of $50,000, with a cap on rebates for expenditures beyond the first $200,000 spent in the state. The bill allows the rebate to offset any income tax liability for the production company, with any excess amount being rebated to the company. It includes an insertion that the "department and the" Commissioner of the Department of Revenue will adopt rules necessary to administer this section, while deleting the reference to "and the office." The bill is set to become effective on June 1, 2024.

Statutes affected:
Introduced: 41-7A-1, 41-7A-42, 41-7A-43
Enrolled: 41-7A-1, 41-7A-42, 41-7A-43