The bill HB379 amends the Entertainment Industry Incentive Act of 2009 by introducing a new incentive program for small productions, clarifying eligibility criteria for loan-out companies, and extending the review and evaluation deadline for the Act. Key changes include a revised definition of "payroll" to include all forms of compensation for personnel in qualified production projects in Alabama, and stipulations that payments to loan-out companies are only eligible for rebates if the production company complies with Alabama tax withholding requirements. The definition of "production expenditures" is also clarified to encompass various costs associated with state-certified productions while excluding marketing expenses and profits from exploitation.

Additionally, the bill establishes a new rebate structure for small budget productions, allowing a 45% rebate on payroll for productions with expenditures between $100,000 and $499,999. It sets a threshold of $150,000 for tax exemption eligibility and mandates the return of exemption certificates upon project completion. The Department of Commerce is tasked with implementing these rules and will contract with an out-of-state entity to evaluate the program. The bill also allows unspent incentives to be carried over to the next fiscal year, with a cap of $3 million, and requires annual reporting of qualified production companies claiming incentives. The repeal of the incentives is set to take effect on December 31, 2028, unless extended by the Legislature, and the act will become effective on October 1, 2026.

Statutes affected:
Introduced: 41-7A-42, 41-7A-43, 41-7A-46, 41-7A-47, 41-7A-48, 41-7A-49
Enrolled: 41-7A-42, 41-7A-43, 41-7A-46, 41-7A-47, 41-7A-48, 41-7A-49