After Your Application is Approved
Once your application has been approved, your production must follow all rules and compliance requirements set by the Alabama Entertainment Office and the Alabama Department of Revenue.
General Requirements
- Comply with all Labor, Employment, Immigration, and Internal Revenue laws.
- Ensure your line producer, producers, and production accounting team review and follow the Alabama Entertainment Office’s Rules and Regulations.
- File a Business Privilege Tax (BPT) Form with the Alabama Department of Revenue.
- For questions, contact: Business Privilege Tax Unit, 334-353-7923.
Documentation During Production
- Complete an Alabama Declaration of Residency for each in-state hire in order to claim the 35% rebate. Proof of residency is required.
- Keep copies of all receipts and documentation for the CPA audit.
- Track the total amount of sales and lodging tax exemptions received:
- Sales/use tax exemptions on expenditures.
- Lodging tax exemptions (4% state portion).
Audit Requirement
- Once production has wrapped, you must hire a CPA to perform an agreed-upon procedures audit.
- After completing the audit, the CPA will submit the report to the Alabama Entertainment Office for review.
- Upon approval, the Alabama Entertainment Office will issue a Notice of Rebate, which is forwarded to the Department of Revenue.
Claiming the Rebate
- Rebates are claimed as a film credit on your Alabama income tax return for the tax year in which production costs were completed.
- The income tax return must:
- Be compliant with all state taxes administered by the Department of Revenue.
- Include a Certificate of Compliance from the Alabama Department of Revenue.
- If the production company is a Single Member LLC (SMLLC) disregarded for income tax purposes, both the SMLLC and the parent company must submit Certificates of Compliance.
Certificate of Compliance
- Required for all approved projects beginning September 1, 2019.
- Provides assurance that the company is compliant with state taxes at the time of request.
- Must be requested online through the Alabama Department of Revenue.
- Details:
- Valid for 30 days from issue date.
- Fee: $14 per request.
- Typically issued electronically within 3–5 business days, though additional processing time may be needed.
- If found non-compliant, instructions for re-application will be provided (each request requires a new $14 fee).
- The Certificate of Compliance must be submitted with the income tax return to receive the rebate. Returns filed without the certificate will not be processed for rebate.
Withdrawal of Registration
- A production company should wait until the rebate check has been received before withdrawing its registration as a Foreign Corporation, Nonprofit, or LLC in Alabama.
- Required forms include:
- Foreign Corporation Certificate of Withdrawal
- Foreign LLC Certificate of Withdrawal