Entertainment Bill Sent To Governor

Alabama Senate Bill 177 (SB177) passed the Alabama House Tuesday, May 6 by a vote of 101 YEA to 0 NAY. The bill now goes to Governor Kay Ivey for her signature.

SB177 significantly amends the State's Entertainment Industry Incentive Act of 2009, with the goal of enhancing Alabama's appeal to film, television, and music production companies.

Key Provisions of SB177 include:

• Renaming the Alabama Film Office: The bill proposes changing the name of the Alabama Film Office to the Alabama Entertainment Office, reflecting a broader focus on various entertainment sectors.
• Expansion of Qualified Productions: SB177 includes music albums as eligible for incentives, provided they meet a minimum expenditure threshold of $50,000.
• Increased Incentive Caps:
  • Annual Cap: The total annual cap on incentives is raised from $20 million to $30 million.
  • Per-Project Cap: The maximum rebate per project increases from $10 million to $15 million.
  • Music Album Allocation: A dedicated $5 million annually is set aside specifically for qualifying music album projects.
• Rebate Structure:
  • Production Expenditures: A 25% rebate is offered on qualified production expenditures incurred within Alabama.
  • Resident Payroll: An additional 35% rebate is available for payroll expenses paid to Alabama residents.
• Carryforward Provision: Unspent incentive funds from a given year can be carried forward to subsequent years, ensuring continued support for future projects.
• Aggregation for TV Series: The bill allows individual episodes of a television series to be aggregated to meet the minimum expenditure threshold, facilitating larger productions to qualify for incentives.

Proponents argued that SB177 will stimulate Alabama's economy by attracting more entertainment projects, creating jobs, and fostering local talent.

An announcement was made on the floor of the Senate that the House had passed the bill, to general acclaim. During the brief discussion among the Senators that followed, comments were made about the movie ‘Selma,’ Despite being set in Alabama, that film was produced in Georgia. This movie’s production location has been said to have been a factor in furthering the passage of SB177.

Alabama has a long history of successful music production in Muscle Shoals, and has been steadily building a film industry. The passage of SB177 should significantly enhance Alabama’s ability to attract all types of entertainment productions in the future.