Relating to the Entertainment Industry Incentive Act of 2009; to amend Sections 41-7A-40, 41-7A-41, 41-7A-4...
This could lead to more job openings in the film and music sectors in Alabama.
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HB 429 — Relating to the Entertainment Industry Incentive Act of 2009; to amend Sections 41-7A-40, 41-7A-41, 41-7A-42, 41-7A-45, and 41-7A-48, Code of Alabama 1975, to expand the incentive by renaming it the Film and Music Incentive Act of 2023, to increase the cap on incentives to fifty million dollars annually, and to allow for the inclusion of music and virtual reality as qualified production companies.
Last action — AMD/SUB (Finance and Taxation Education)
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✓Introduced
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✓In Committee
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3Passed House
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4Passed Senate
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5To Executive
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6Enacted
This bill died with 2023 Regular Session. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.
In plain language
The bill increases financial incentives for the film and music industry in Alabama.
This bill renames the Entertainment Industry Incentive Act to the Film and Music Incentive Act of 2023 and raises the annual cap on incentives to fifty million dollars. It also allows for music and virtual reality to be included as qualified productions.
What this means for you
- Workers: This could lead to more job openings in the film and music sectors in Alabama.
- Small Business: This means potential new opportunities for local businesses involved in film and music production.
Summary
Entertainment Industry Incentive Act of 2009, to amend
Bill Text
What changed in the latest version
349 added · 437 removedPlain-language change summary
The recent amendments to HB 429 rename the Entertainment Industry Incentive Act of 2009 to the Film and Music Incentive Act of 2023 and increase the annual incentive cap from its previous limit to fifty million dollars. Additionally, the amended bill allows music and virtual reality projects to qualify for these incentives alongside traditional film productions. These changes are significant as they aim to attract a broader range of entertainment projects to Alabama, potentially boosting the state's economy and creating more jobs in the creative sector.
HB429 INTRODUCEDENGROSSED AAMXQ7-1AAMXQ7-2 By Representatives Kiel, Moore (P), Pringle, Underwood, Colvin, Woods, Baker, Wilcox, Brown, Stadthagen RFD:
03-May-23 2023 Regular Session Page 0 AAMXQ7-1HB429 03/13/2023Engrossed DJ2 (F)RA4 2023-896A 2BILL 4TO SYNOPSIS:BE ENTITLED AN ACT 9 Relating to the Entertainment Industry Incentive Act of 2009;
Underto existingamend law,Sections certain41-7A-40, state41-7A-41, rebates41-7A-42, 41-7A-45, and sales,41-7A-48, use,Code andof lodgingAlabama tax1975, exemptionsto areexpand providedthe forincentive qualifiedby productionrenaming companiesit in the entertainmentFilm industryand workingMusic inIncentive effortsAct of 2023, to attractincrease the entertainmentcap industryon incentives to Alabama.fifty million dollars annually, and to allow for the inclusion of music and virtual reality as qualified production companies.
This bill would amend the Entertainment Industry Incentive Act of 2009 to create the Film and Music Incentive Act of 2023.
This bill would expand the entertainment rebate program offered under current law to offset certain production expenditures of qualified productions.
A BILL TO BE ENTITLED AN ACT Relating to the Entertainment Industry Incentive Act of 2009;
to amend Sections 41-7A-40, 41-7A-41, 41-7A-42, 41-7A-43, 41-7A-45, and 41-7A-48, Code of Alabama 1975, to expand the incentive by renaming it the Film and Music Incentive Act of 2023, to allow for the inclusion of music and virtual reality as qualified production companies;
to define a "historic location," and to increase the current Page 1 HB429 INTRODUCED cap of the incentive.
Sections 41-7A-40, 41-7A-41, 41-7A-42, 41-7A-43, 41-7A-45, and 41-7A-48, Code of Alabama 1975, are amended to read as follows:
(1) Although Alabama is filled with attractive natural resources, a growing workforce, and other resources Page 1 HB429 Engrossed attractive to the entertainment film and music industry, Alabama has not developed its potential in terms of attracting the entertainmentfilm and music industry to the state by offering production incentives for qualified productions not previously offered in Alabama.
(3) Because Alabama does not currently offer a sufficiently viable incentive package to the industry, Page 2 HB429 INTRODUCED Alabama cannot effectively compete with other states for attracting industry projects in such a volume to cause the development of adequate industry infrastructure and those projects locate elsewhere.
(5) The Legislature recognizes and confirms the planning and promotion of the entertainmentfilm and music industry are of vital importance to the economic development of Alabama as are the recruitment, expansion, and retention of industrial development within the state, and the Page 2 HB429 Engrossed promotion of the entertainmentfilm and music industry should be included as an integral part of any comprehensive economic development strategy plan promoted by the state and state agencies.
(7) The film and music industry has been significantly disrupted since Act 2009-144 was passed in 2009, and, to be competitive in attracting such projects, Alabama must devote more financial resources to the effort." "§41-7A-42 Page 3 HB429 INTRODUCED For purposes of this article, the following terms shall have the following meanings:
In the case of tangible property, property which is acquired or leased from a source 95 within the State of Alabama;
Those persons or entities Page 3 HB429 Engrossed engaged in the production of qualified products with entertainment content as defined under paragraph a.
(5) HISTORICOFFICE. LOCATION.
Parcels, portions of which are located in or within 300 feet of both of the following:
a.
The Africatown Historic District, as defined in Section 11-74-2, b.
The Mobile County Training School, one of the oldest African American public schools in the State of Alabama.
(5)(6) OFFICE.
(6)(7)(6) PAYROLL.
All salary, wages, and other compensation, including related benefits, including specifically, but not limited to, compensation and benefits Page 4 HB429 INTRODUCED provided to resident and nonresident producers, directors, writers, actors, and other personnel involved in qualified production projects in Alabama.
(7)(8)95 (7) PRODUCTION EXPENDITURES.
or other similar production expenditures as determined by rule Page 4 HB429 Engrossed or regulation.
The term does not include postproduction Page 5 HB429 INTRODUCED expenditures for marketing or any amounts that are paid to persons or entities as a result of their participation in profits from the exploitation of a motion picture production.
(8) QUALIFIED PRODUCTION.(9)PRODUCTION. PRODUCTION HEADQUARTERS.
The temporary headquarters in Alabama of a qualified production, as certified by a qualified production facility.
(10) QUALIFIED PRODUCTION.
and any trailer, pilot, video teaser, or demo created primarily to stimulate the sale, marketing, promotion, or exploitation of future investment in either a product or a qualified production via any means and media in Page 5 HB429 Engrossed any digital media format, film, or videotape, provided such program meets all the underlying criteria of a qualified production.
The term does not include any ongoing television Page 6 HB429 INTRODUCED program created primarily as news, weather, or financial market reports, a production featuring current events, sporting events, an awards show or other gala event, a production whose sole purpose is fund-raising, a long-form production that primarily markets a product or service, a production used for corporate training or in-house corporate advertising or other similar productions;
(9)(11)(9) QUALIFIED PRODUCTION COMPANY.
(12)QUALIFIED(10) PRODUCTIONRESIDENT FACILITY.OF ALABAMA.
A complexnatural ofperson buildingsand, andfor associatedthe back-lotpurpose facilitiesof indetermining whicheligibility filmsfor orthe musicincentives areprovided intendedby tothis bearticle, regularlyany producedperson thatdomiciled isin within the State of Alabama and thatany containsother atperson leastwho fourmaintains a permanent place of abode within the following:state and spends in the aggregate more than six months of each year within the State of Page 6 HB429 Engrossed Alabama.
a.(11) STATE-CERTIFIED PRODUCTION.
A minimum of 5,000 square feet of office space available for use by qualified production companies for qualified productions.
b.
Indoor, climate-controlled storage for sets and materials anticipated to be used or are being used for Page 7 HB429 INTRODUCED qualified productions.
c.
Space for carpentry or other set and scene preparation activities for qualified productions.
Show all 76 changed lines (36 more)
d.
At least three indoor, fully-insulated, climate-controlled, and soundproof sound stage facilities with a minimum ceiling height of 30 feet.
Each sound stage facility must contain sufficient electrical service so as to not need generators for ordinary operation.
e.
A minimum of 4,000 square feet of climate-controlled, enclosed storage for costumes used for qualified productions.
(10)(13) RESIDENT OF ALABAMA.
A natural person and, for the purpose of determining eligibility for the incentives provided by this article, any person domiciled in the State of Alabama and any other person who maintains a permanent place of abode within the state and spends in the aggregate more than six months of each year within the State of Alabama.
(11)(14) STATE-CERTIFIED PRODUCTION.
The rebate shall be equal to 25 percent of the state-certified production's production expenditures excluding payroll paid Page 8 HB429 INTRODUCED to residents of Alabama plus 35 percent of all payroll paid to residents of Alabama for the state-certified production, provided the total production expenditures for a project must equal or exceed at least five hundred thousand dollars ($500,000), but for each year until the fiscal year ending September 30, 2023, no rebate shall be available for production expenditures incurred after the first twenty million dollars ($20,000,000).($20,000,000) fifty million dollars ($50,000,000).
of production expenditures expended in Alabama on a state-certified production.
For the fiscal year ending September 30, 2024, no rebate shall be available for production expenditures incurred after the first sixty-five million dollars ($65,000,000).
For the fiscal year ending September 30, 2025, no rebate shall be available for production expenditures incurred after the first one hundred ten million dollars ($110,000,000).
For the fiscal year ending September 30, 2026, and each subsequent fiscal year thereafter, no rebate shall be available for production expenditures incurred after the first one hundred fifty million dollars ($150,000,000).
However, in determining the total production expenditures incurred by a qualified production company on a qualified production, the total production expenditures of a television series or miniseries, whether a single season or multiple seasons thereof, to be filmed within a period of 12 consecutive months, each individual episode of which separately and independently meets the Page 97 HB429 INTRODUCEDEngrossed definition of a qualified production, may be aggregated to meet the monetary requirements set forth in subsection (a) as long as each individual episode within the series pertains to the same subject as the other episodes in the series.
(d) A qualified production company shall be entitled to the rebate for production expenditures as provided in subsection (a) for a qualified project that is limited only to the production of a soundtrack used in a motion picture or documentary, provided that the production expenditures for the soundtrack project must equal or exceed at least fifty thousand dollars ($50,000), but no rebate shall be available for production expenditures incurred after the first three hundred thousand dollars ($300,000) of Page 108 HB429 INTRODUCEDEngrossed production expenditures expended in Alabama under this subsection.
(g) If the rebate available under this section exceeds a qualified production company's Alabama income tax liability for the tax year in which production activity in Alabama concludes on the state-certified production, the excess of the rebate over a qualified production company's Alabama income tax liability shall be rebated to the Page 119 HB429 INTRODUCEDEngrossed qualified production company.
(h) The Commissioner of the Department of Revenue and the office shall promulgate adopt rules necessary to administer this section."section. "§41-7A-45 A qualified production company that intends to expend in the aggregate one hundred fifty thousand dollars ($150,000) or more in connection with a qualified production in the State of Alabama within a consecutive 12-month period, upon making application for, meeting the requirements of, and receiving written certification of that designation from the office, shall be exempted from the payment of the state portion, but not the local portion of sales, use, and lodging taxes levied pursuant to Sections 40-23-2, 40-23-61, and 40-26-1, respectively, on production expenditures expended in Alabama in connection with the state-certified productions production.
For"§41-7A-45 eachA yearqualified untilproduction company that intends to expend in the fiscalaggregate yearone endinghundred Septemberfifty 30,thousand 2023,dollars ($150,000) or more in connection with a qualified production in the TheState exemptionof providedAlabama bywithin thisa sectionconsecutive 12-month period, upon making application for, meeting the requirements of, and receiving written certification of that designation from the office, shall be exempted from the payment of the state portion, but not bethe availablelocal forportion productionof expendituressales, incurreduse, byand alodging qualifiedtaxes levied pursuant to Sections 40-23-2, 40-23-61, and 40-26-1, respectively, on production companyexpenditures afterexpended thein firstAlabama twentyin millionconnection dollarswith ($20,000,000).the state-certified productions.
ForThe theexemption fiscalprovided yearby endingthis Septembersection 30,shall 2024,not be available for production expenditures incurred by a qualified production company after the capfirst ontwenty suchmillion dollars ($20,000,000) fifty million dollars ($50,000,000) of production expenditures expended eligiblein forAlabama on a state-certified project." "§41-7A-48 For the exemptionfiscal describedyear inending September 30, 2009, the aggregate cap of incentives granted under this section,article shall benot sixty-fiveexceed five million dollars ($65,000,000).($5,000,000) for all qualified production companies.
For the fiscal year ending September 30, 2025,2010, the aggregate cap onof suchincentives productiongranted expendituresPage eligible10 forHB429 theEngrossed exemptionunder describedthis inarticle inshall Alabamanot onexceed aseven state-certifiedmillion project.five hundred thousand dollars ($7,500,000) for all qualified production companies.
this section shall be Page 12 HB429 INTRODUCED one hundred ten million dollars ($110,000,000).
For the fiscal year ending September 30, 2026, and each subsequent fiscal year thereafter, the cap on such production expenditures eligible for the exemption described in this section shall be one hundred fifty million dollars ($150,000,000)." "§41-7A-48 (a) For the fiscal year ending September 30, 2009, the aggregate cap of incentives granted under this article shall not exceed five million dollars ($5,000,000) for all qualified production companies.
For the fiscal year ending September 30, 2010, the aggregate cap of incentives granted under this article shall not exceed seven million five hundred thousand dollars ($7,500,000) for all qualified production companies.
For the fiscal year ending September 30, 2014, the aggregate cap of incentives granted under this article shall not exceed fifteen million dollars ($15,000,000) and for all subsequent fiscal years thereafter, through September 30, 2023, the aggregate cap of incentives granted under this article shall not exceed twenty million dollars ($20,000,000) for all qualified production companies.
For the fiscal year ending September 30, 2014,2024, the aggregate cap of incentives granted under this article shall not exceed fifteenfifty million dollars ($15,000,000)($50,000,000) and for all each subsequent fiscal years thereafter,thereafter year until the fiscal year ending September 30, 2023, the aggregate cap of incentives granted under this article shall not exceed twenty million dollars Page 13 HB429 INTRODUCED ($20,000,000) for all qualified production companies.companies." Section 2.
For the fiscal year ending September 30, 2024, the aggregate cap of incentives granted under this article shall not exceed sixty-five million dollars ($65,000,000) for all qualified production companies.
For the fiscal year ending September 30, 2025, the aggregate cap of incentives granted under this article shall not exceed one hundred ten million dollars ($110,000,000) for all qualified production companies.
For the fiscal year ending September 30, 2026, and each subsequent fiscal year thereafter, the aggregate cap of incentives granted under this article shall not exceed one hundred fifty million dollars ($150,000,000) for all qualified production companies.
(b) Beginning the fiscal year ending September 30, 2024, one-third of the aggregate cap described in subsection (a), together with the caps described in Section 41-7A-43(e), shall be reserved each year for qualified productions created, in whole or in part, at a qualified production facility located at a historic location and which also has its production headquarters at such qualified production facility, as certified by such qualified production facility.
The applicable qualified production facility shall be required to make a certification of the foregoing and may impose a cap on the rebate available on applicable qualified productions that is less than the caps provided in Section 41-7A-43.
In the event that applications are not received by the close of the fourth quarter of a particular year for the amounts reserved in this section, Page 14 HB429 INTRODUCED such reserved but unallocated funds shall carry forward for allocations in accordance with this subsection in the subsequent fiscal years until fully allocated.
Amounts carried forward into subsequent fiscal years shall not be counted towards the aggregate caps described in subsection (a) for purposes of calculating the amount reserved under this section for the subsequent fiscal years.
The aggregate caps described in subsection (a) shall be increased to allow for the carry forward described in this section." Section 2.
All laws or parts of laws which conflict Page 11 HB429 Engrossed with this act are repealed.
Page 1512 HB429 Engrossed House of Representatives Read for the first time and referred ................03-May-23 to the House of Representatives committee on Ways and Means Education Read for the second time and placed ................11-May-23 on the calendar:
amendments Read for the third time and passed ................23-May-23 as amended Yeas 100 Nays 1 Abstains 1 John Treadwell Clerk Page 13
Show all 76 changed rows (36 more)
AI-generated reading aid from the bill's amendatory text — verify against the official bill.
The bill renames the Entertainment Industry Incentive Act, increases the annual incentive cap, and expands qualifying productions.
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§41-7A-40
This article may be cited as the "Entertainment Industry Incentive Act of 2009."→ This article may be cited as the "Film and Music Incentive Act of 2023."The name of the act is updated to reflect its new focus on film and music.
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§41-7A-43
$20,000,000→ $50,000,000The cap on production expenditures eligible for rebates is increased from twenty million to fifty million dollars.
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§41-7A-42
entertainment content as defined under paragraph a. of subdivision (8).→ entertainment content as defined under paragraph a. of subdivision (8); music and virtual reality as qualified production companies.Music and virtual reality are added as eligible categories under the act.
Amendments
7 amendments- Finance and Taxation Education Amendment S14285-1 Show changes
- Amendment 6O8X13-1 Show changes
- Amendment IR4EW6-1 Show changes
- Amendment SO1O75-1 Show changes
- Amendment UET0GD-1 Show changes
- Economic Development and Tourism Amendment TS2791-1 Show changes
- Ways and Means Education Amendment 0NIDGG-1 Show changes
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Action History
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Read Second Time in Second House
Sponsors
- Jamie Kiel · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 0 co-sponsors · 139 not signed on · 1 voted No
Sponsors (1)
Co-sponsors (0)
None.
Not signed on (139)
139 members have not signed on to this bill.
Show all 139 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 10 | 0 | 0 | 0 |
| R | 138 | 0 | 0 | 4 |
| D | 48 | 2 | 0 | 2 |
| Total | 196 | 2 | 0 | 6 |
| % of votes cast | 96% | 1% | 0% | 3% |
How each member voted (204)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 5 | 0 | 0 | 0 |
| R | 70 | 0 | 0 | 1 |
| D | 24 | 0 | 0 | 2 |
| Total | 99 | 0 | 0 | 3 |
| % of votes cast | 97% | 0% | 0% | 3% |
How each member voted (102)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 4 | 0 | 0 | 1 |
| R | 67 | 0 | 0 | 4 |
| D | 22 | 0 | 0 | 4 |
| Total | 93 | 0 | 0 | 9 |
| % of votes cast | 91% | 0% | 0% | 9% |
How each member voted (102)
Subjects
Frequently asked questions
- What does HB 429 do?
- Entertainment Industry Incentive Act of 2009, to amend
- Who sponsors HB 429?
- HB 429 is sponsored by Jamie Kiel (R).
- What is the current status of HB 429?
- This bill died with 2023 Regular Session. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
- Where can I track HB 429?
- Track HB 429 free on One Click Politics — get push/email alerts when it moves.
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