Written by David Lewis on Feb 9, 2009. Posted in Incentive News

Alabama approves incentives bill

A House committee has approved a bill aimed at bringing more productions to the state of Alabama.

The bill will provide exemptions on sales, use and lodging taxes for companies that shoot in Alabama. The state would pay for the incentives by requiring some taxpayers to pay penalties when their tax payments are late. The bill would restore the late payment penalties, which were removed by a ruling of an administrative law judge.

The bill now goes to the full House for debate.

Alabama has offered full tax incentives in the past, but these were abandoned in 2006. However, an incentives package will be presented in the 2009 session of the Alabama house and senate. The legislation would provide a 25% rebate for all qualified expenditures in the state, excluding payroll. The film project will earn a 35% rebate for payroll to Alabama residents.

Lee Sentell, Alabama Tourism Director, said: "By offering incentives Alabama would be able to attract not just movies, but also televisions shows, commercials and other productions."