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Alabama Film Incentive Legislation |
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A proposed Bill that would allow employment tax credits authorized for certain Alabama Film Office approved companies and projects. |
69050-1:n:06/25/2004:DSM/th LRS2004-2916
| SYNOPSIS: | Under existing law, an approved company does not have an employment tax credit for the production of a film authorized by the Alabama Film Office. |
| This bill would authorize the Alabama Film Office to offer an employment tax credit to an approved company for an approved project and would further authorize the Department of Revenue to promulgate rules and regulations to implement and administer this act. |
To authorize the Alabama Film Office to offer an employment tax credit to an approved company for an approved project and to authorize the Department of Revenue to promulgate rules and regulations to implement and administer this act.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) An approved company involved in a film production in Alabama in compliance with Chapter 7A of Title 41 of the Code of Alabama 1975, shall be entitled to a tax credit for the employment of residents of Alabama in connection with production of an approved project as defined in Section 41-7A-21, Code of Alabama 1975. The credit shall be equal to 10 percent of the total aggregate payroll for residents employed in connection with the production when total production costs in Alabama equal or exceed three hundred thousand dollars ($300,000) but total less than one million dollars ($1,000,000) during the taxable year. The credit shall be equal to 20 percent of the total aggregate payroll for residents employed in connection with such production when total production costs in Alabama equal or exceed one million dollars ($1,000,000) during the taxable year. The term "total aggregate payroll" shall not include the salary of any employee whose salary is equal to or greater than one million dollars ($1,000,000).
(b) The credit may be applied to any income tax or any other tax liability applicable to the approved company.
(c) If the approved company is an entity not subject to any tax, the credit shall flow through to its partners or members as follows:
(1) Corporate partners or members may claim their share of the credit on their corporation income or other tax returns.
(2) Individual partners or members may claim their share of the credit on their individual income tax returns.
(3) Partners or members that are estates or trusts shall claim their share of the credit on their fiduciary income tax returns.
(d) Any unused credit may be carried forward no more than two years from the date the credit was earned.
Section 2. The Department of Revenue shall promulgate rules and regulations to implement and administer this act.
Section 3. 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.