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Alabama Film Incentive Legislation |
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A proposed Bill that amends SB 84 to would allow for for certain tax credits for film production. |
64227-1:n:02/20/2004:DSM/mfp LRS2004-1184
| SYNOPSIS: | Under existing law, certain tax incentives are used for the promotion of business and commerce. |
| This bill would allow an individual taxpayer to claim a tax credit against his or her state income tax liability for an investment in an approved project authorized by the Alabama Film Office. |
Relating to taxation; to allow an individual taxpayer to claim a tax credit against his or her state income tax liability for investment in an approved project authorized by the Alabama Film Office.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) Beginning with tax year 2004, and continuing each year thereafter, a tax credit may be claimed by an individual taxpayer against the tax imposed by Section 40-18-2, Code of Alabama 1975, in an amount of up to 15 percent of the approved cost for an investment in an approved project by the Alabama Film Office in accordance with Article 2 of Chapter 7A of Title 41. The credit shall be limited to 12 months after issuance and the amount of the credit shall not exceed the aggregate amount of the taxpayer's liability for that tax year pursuant to Article 1, Chapter 18, Title 40, Code of Alabama 1975.
(b) If the total production-related cost investment is greater than three hundred thousand dollars ($300,000) and less than or equal to eight million dollars ($8,000,000), the taxpayer shall be allowed a tax credit of 10 percent of his or her actual investment. If the total production-related cost investment is greater than eight million dollars ($8,000,000), the taxpayer shall be allowed a tax credit of 15 percent of his or her actual investment.
(c) Any tax credit allocated to an Alabama taxpayer and not previously claimed by the taxpayer may be transferred or sold by the taxpayer to another Alabama taxpayer and the tax credit be applied in the same manner and against the same taxes as the original taxpayer subject to the following conditions:
(1) A taxpayer may make only three transfers or sales of tax credits during any calendar year, provided, however, a single transfer or sale may involve one or more transferees. The transferee of the tax credits may transfer or sell such tax credits subject to this section.
(2) Transferors and transferees shall submit to the Alabama Film Office and to the Department of Revenue in writing, a notification of any transfer or sale of tax credits within 30 days after the transfer or sale of such tax credits. The notification shall include the transferor's tax credit balance prior to transfer, the remaining balance after transfer, all tax identification numbers for both transferor and each transferee, the date of transfer, the amount transferred, and any other information required by the Alabama Film Office or the Department of Revenue.
(3) Failure to comply this subsection will result in the disallowance of the tax credit until the taxpayers are in full compliance.
(4) The transfer or sale of this credit does not extend the time in which the credit can be used. The carry forward period for credit that is transferred or sold begins on the date on which the credit was originally earned.
(5) A transferee shall have only such rights to claim and use the credit that were available to the transferor at the time of the transfer. To the extent that the transferor did not have rights to claim or use the credit at the time of the transfer, the Department of Revenue shall either disallow the credit claimed by the transferee or recapture the credit from the transferee through any collection method authorized. The transferee's recourse is against the transferor.
(d) The Department of Revenue shall promulgate and adopt rules to carry out the provisions of this section.
Section 2. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.