AL SB253

Creates a new small production incentive program offering 45% rebate on payroll paid to Alabama residents for productions with expenditures between $100,000 and $499,999, with up to $2 million reserved annually for this program

Increases the annual aggregate incentive cap from $20 million to $22 million beginning fiscal year 2026, with $2 million reserved specifically for music albums

Lowers minimum expenditure thresholds for soundtracks and music videos from $50,000 to $30,000, and reduces maximum eligible expenditures for soundtracks from $300,000 to $200,000

Clarifies that payments to loan-out companies qualify for rebate calculations only if the production company withholds and remits Alabama withholding or income tax at the highest applicable rate

Extends deadline for Department of Commerce to contract with an out-of-state entity to review and evaluate the incentive program from 2027 to 2028 Regular Legislative Session