*New* Production Directory
Based on standard industry listings of categories, the
*New* Alabama Production Directory is a
database of local film professionals and vendors. The Alabama Film Office
provides this listing service at no cost to our community of crew and support
service companies.
THIS IS FOR CREW ONLY........NOT ACTORS OR TALENT!
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If you would like to be listed in the *New* Production Directory, please
click
Register Now to create a new online listing. Registration for the new
Alabama Production Guide opened on March 1, 2010; the new database will
be available online on May 30, 2010.
During the open registration period, the old
Production Directory will be made available on our website. If you need
immediate assistance in locating listings and credits for Alabama crew members
and support services during this interim period, please contact the Film
Office directly at (334) 242-4195
Film Incentives/Investment Partnerships Bill
Signed into Law by Governor Riley
By Bruce P. Ely and James E. Long
i.
Following votes of 102—0 in the Alabama House of Representatives and 32-0 in
the Senate, House Bill 69, known as the
“Entertainment Industry Incentive Act of 2009,’ was signed into law by
Governor Bob Riley yesterday. It is now Act
2009-144.
The Act is the successor to two separate bills, each introduced and almost
passed in the 2008 regular session. The first dealt with film production
incentives, while the other tightened the rules regarding composite returns
and withholding for non-resident partners and LLC members, coupled with a safe
harbor for ”qualifled investment partnerships” (QIPs) and publicly-traded
limited partnerships (P11’s) and their non-resident investors.
House Bill 69 is one of the first tax bills
signed into law by Governor Riley this session and was supported by a number
of diverse business and trade associations, including the Alabama Department
of Tourism, the Alabama Development Office, the Business Council of Alabama,
the Alabama Retail Association, the Economic Developers Association of Alabama
(EDAA), the Motion Picture Association of America (MPAA) and the Birmingham
Regional Chamber of Commerce. A number of investment fund managers, as well as
the Biotechnology Association of Alabama and Birmingham Venture Club, also
supported the QIP provisions of the bill. Our firm represented the latter
group in these negotiations.
The film and entertainment incentives portion of the bill provides for:
1. Exemptions on sales, use and lodging taxes for qualified production
companies operating in Alabama;
2. Income tax credits equal to 25% of qualified production expenditures,
excluding payroll and benefits paid to Alabama residents;
3. A 35% rebate for all payroll expenses paid by qualified production
companies to Alabama residents when those expenses exceed $500,000 but are
less than $10 million; and
4. A 25%/35%credit or rebate for qualified production expenditures related
exclusively to developing soundtracks.
The total amount of tax exemptions and rebates that can be granted to
qualified production companies in any one calendar year is capped, however, at
$5 million for the remainder of 2009, $7.5 million for 2010, and $10 million
for 201 1 and beyond. The authors and bill sponsors hope those caps can be
increased next year, depending on the state’s financial situation.
A Baldwin County, Alabama-based film producer, Scott Lumpkin, told The
Mobile Press Register recently that he was excited about the incentives
bill. “1 was doing at least two movies a year here in Alabama until four years
ago [when the former incentives act sunset], and then it got to where I
couldn’t compete anymore. The incentives were too good everywhere else
The QIP/composite return provisions were merged into
House Bill 69 by its chief sponsor, House
budget committee chairman Richard Lindsey, in order to spay for” the film
incentives. Section 13 of the bill so states, which is a rare legislative
declaration. During the House deliberations, however, the Alabama Department
of Revenue (ADOR) asked Chairman Lindsey to amend the bill to reinstate a
statutory penalty repealed in 1995, according to its Administrative Law
Division, relating to a taxpayer’s failure to pay the appropriate tax when it
timely filed the return but the return did not report the correct amount of
tax. This amendment provided the ADOR, and the powerful Alabama Education
Association, comfort that the bill was revenue neutral, if not a slight
revenue raiser--even without considering the anticipated tax revenues and new
jobs that many expect to be generated by both aspects of the bill, beginning
this year.
Also during legislative deliberations, the effective date of the bill was
changed so that all
amendmentsareretroactivetoianuary 1,2009,
meaning that QlPs and their non-resident investors can now rely on the safe
harbor protection afforded by Act 2009-144. On the other hand, nonresident
member/partner withholding (unless they have consented to filing a composite
return) should already be implemented. The authors have sought advice from the
Director of the Income Tax Division regarding how the ADOR will administer
these provisions during 2009. The Tourism Department and the ADOR are already
working on proposed regulations and forms to implement the film incentives
portion of the Act. According to the Governor’s comments yesterday, we can
expect to have those procedures in place no later than August.
If you have any questions regarding the new Act, please contact the authors or
any other member of our SALT Practice Group.
Welcome.
Alabama is an atmosphere so stimulating diverse filmmakers find it hard to resist being captivated by its charms. It is a state, which has forever nurtured giants of literature, music, art and theater.
Alabama is a stunning contrast of environments - the most biologically diverse place in America outside of California. The past still lives in Alabama's cities and towns, while space-age technology and modern industry flourish.
With legendary southern hospitality, Alabama has catered to everything from small, independent shorts to massive Hollywood film productions.
Let us demonstrate to you the countless advantages of filming in Alabama. Contact the Alabama Film Office today.
ALABAMA. THE COUNTRY TO FILM IN.
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