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AlabamaHB3792026 Regular SessionHouse

Entertainment Industry Incentive Act of 2009 amended, create additional incentive program, extend review and evaluation deadline

Sponsored By: Terri Collins (Republican)

Enacted

Economic Development

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 0 costs, 3 mixed.

New payroll rebate for small productions

Beginning October 1, 2026, state-certified productions with total spending of $100,000–$499,999 qualify for a new payroll rebate. Eligible production companies get 45% of payroll paid to Alabama residents. The Alabama Entertainment Office may reserve up to $2 million each year for these rebates. The program ends December 31, 2028, but credits awarded by that date remain protected.

Music rebates expand, soundtrack cap shrinks

Beginning October 1, 2026, soundtrack-only and music-video-only projects qualify for rebates with $30,000 in production spending, down from $50,000. Eligible soundtracks must be used in a movie or documentary. The eligible Alabama spending cap for soundtracks falls from $300,000 to $200,000. Music videos keep their existing $200,000 eligible Alabama spending cap. These changes end December 31, 2028, without reducing credits already awarded.

Production rebates require loan-out tax withholding

Beginning October 1, 2026, payments to loan-out companies for Alabama work count toward rebates only with required tax withholding. Production companies must withhold and pay Alabama withholding tax or income tax at the highest applicable rate. These payments must satisfy the loan-out company's applicable estimated or composite tax obligations. Loan-out companies must file required Alabama returns, but missing an income tax return alone does not disqualify the payment. These rules end December 31, 2028, without reducing credits already awarded.

Production incentive review and privacy safeguards

Beginning October 1, 2026, Revenue must annually give Commerce a list of production companies that claimed incentives. Commerce may use it only for economic development planning and program review, with safeguards required by Alabama taxpayer-confidentiality law. Commerce must also hire an out-of-state group to evaluate the program. Findings are due to the Legislature by the first legislative day of the 2028 regular session, replacing the 2027 deadline.

Higher production incentive cap favors albums

For the fiscal year ending September 30, 2026, and later years, the annual incentive cap rises from $20 million to $22 million. Within that cap, $2 million each year is reserved for music albums rather than other productions. Reserved money may fund other production rebates if no album applications arrive and no album incentives are allocated by July 1. These provisions end December 31, 2028, without reducing credits already awarded.

Sponsors & Cosponsors

Sponsor

  • Terri Collins

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 267 • No: 1

Senate vote • 4/7/2026

Motion to Read a Third Time and Pass - Adopted Roll Call 1188

Yes: 33 • No: 0

Senate vote • 4/7/2026

Third Reading in Second House

Yes: 33 • No: 0

House vote • 3/3/2026

Third Reading in House of Origin

Yes: 102 • No: 0 • Other: 2

House vote • 3/3/2026

Motion to Read a Third Time and Pass - Adopted Roll Call 699

Yes: 99 • No: 1 • Other: 5

Actions Timeline

  1. Enacted

    4/16/2026House

  2. Signature Requested

    4/8/2026Senate

  3. Delivered to Governor

    4/8/2026House

  4. Third Reading in Second House

    4/7/2026Senate

  5. Motion to Read a Third Time and Pass - Adopted Roll Call 1188

    4/7/2026Senate

  6. Ready to Enroll

    4/7/2026House

  7. Enrolled

    4/7/2026House

  8. Read for the Second Time and placed on the Calendar

    3/19/2026Senate

  9. Reported Out of Committee Second House

    3/18/2026Senate

  10. Third Reading in House of Origin

    3/3/2026House

  11. Motion to Read a Third Time and Pass - Adopted Roll Call 699

    3/3/2026House

  12. Read for the first time and referred to the Senate Committee on Finance and Taxation Education

    3/3/2026Senate

  13. Pending Committee Action in Second House

    3/3/2026Senate

  14. Reported Out of Committee House of Origin

    2/25/2026House

  15. Read for the Second Time and placed on the Calendar

    2/25/2026House

  16. Read for the first time and referred to the House Committee on Ways and Means Education

    2/3/2026House

  17. Pending Committee Action in House of Origin

    2/3/2026House

Bill Text

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