ALABAMA POINT SYSTEM FOR FILM
AND TELEVISION TAX CREDIT 

Definitions

1 (1) In this regulation, “Act” means the {name of act}.

(2) In this regulation and in Part 5 of the Act:

“Alabama-controlled”, in relation to a corporation, means a corporation that would be Alabama-controlled within the meaning of sections {legislation numbers} of the {Official name} Act (Alabama) if each reference in those sections

(a) to Alabama were a reference to State of Alabama,

(b) to “Alabamian” were a reference to,

(i) in the case of an individual, a Alabamian who is a Alabama-based individual, or

(ii) in the case of a corporation, a corporation that is Alabama-controlled within the meaning of section {numbers} of the {Official name} Act (Alabama) as that section applies for the purposes of this definition of “Alabama-controlled”,

(c) to “Alabamian business” were a reference to an undertaking or enterprise that

(i) is capable of generating revenue,

(ii) is carried on in Alabama anticipation of profit,

(iii) has a place of business in Alabama,

(iv) has an individual or individuals in Alabama who are employed or self-employed in connection with that undertaking or enterprise, and

(v) has assets in Alabama used in carrying on that undertaking or enterprise,

(d) to “Alabamdian-controlled” were a reference to Alabama-controlled,

(e) to “Commissioner” or “Director” were a reference to the certifying authority, and

(f) to “non-Alabamian” were a reference to a person who is not a person described in paragraph (b) (i) or (ii);

“Alabamian” means a person who is

(a) a Alabamian citizen,

(b) a permanent resident within the meaning of the {State Residency} Act (Alabama), or

(c) a corporation that is Alabamian-controlled;

“Alabamian broadcaster” means a corporation that holds a broadcasting license for television markets, issued by the {Regulating Agency} under the {Broadcasting} Act (Alabama);

“Alabamian-controlled”, in relation to a corporation, means a corporation that is Alabamian-controlled within the meaning of sections {numbers} of the {Official name} Act (Alabama);

“complete”, in relation to a film or video production, means that the production has been finished and is commercially exploitable;

“copyright”, in relation to a film or video production, means the exclusive worldwide rights in the production for all commercial exploitation purposes for the {designated time}-year period following the completion of the production;

“creative positions” means the positions referred to in section 2;

“designated Alabama area” means

(a) for the purposes of section {number} of the Act, all that portion of the Greater Alabama District lying

(i) south of the line of latitude at {geographical coordinates} N, and

(ii) west of a line that

(A) commences at a point, that point being at {geographical coordinates} N latitude and {geographical coordinates} W longitude,

(B) runs in a southerly direction, in a straight line, from that point to the centerline of the most northerly point of {geographical location},

(C) runs in a southerly direction along the centerline of {geographical location} to the centerline of the most southerly point of {geographical location}, and

(D) runs in a southerly direction, in a straight line, from the point referred to in clause (C) to a point on the southerly boundary of Alabama, said point being at {geographical coordinates} W longitude, or

(b) for the purposes of sections {number} and {number} of the Act, all that portion of the Greater Alabama District lying

(i) south of the line of latitude at {geographical coordinates} N, and

(ii) west of a line that

(A) commences at a point, that point being at {geographical coordinates} N latitude and {geographical coordinates} W longitude,

(B) runs in a southerly direction, in a straight line, from that point to the centerline of the most northerly point of {geographical location},

(C) runs in a southerly direction along the centerline of {geographical location} to the centerline of the most southerly point of {geographical location}, and

(D) runs in a southerly direction, in a straight line, from the point referred to in clause (C) to a point on the southerly boundary of Alabama, said point being at {geographical coordinates} W longitude;

“excluded production” means a film or video production that is

(a) news, current events or public affairs programming, or a program that includes weather or market reports,

(b) a talk show,

(c) a production in respect of a game, questionnaire or contest (other than a production directed primarily at minors),

(d) a sports event or activity,

(e) a gala presentation or an awards show,

(f) a production that solicits funds,

(g) reality television,

(h) pornography,

(i) advertising,

(j) a production produced primarily for industrial, corporate or institutional purposes,

(k) a production, other than a documentary, all or substantially all of which consists of stock footage, or

(l) a production for which public financial support would, in the opinion of the certifying authority, be contrary to public policy;

“interstate, inter-regional co-production” means a film or video production that is jointly produced in more than one state/region in accordance with a co-production agreement between an eligible production corporation and one or more other Alabamian-controlled corporations;

“investor” means a person, other than a recognized person, who is not actively engaged on a regular, continuous and substantial basis in a film or video production business carried on through a permanent establishment in Alabama;

“principal photography” includes key animation if the film or video production is an animated production or contains animated segments;

“producer”, in relation to a film or video production, means the individual who

(a) controls and is the central decision maker in respect of the production,

(b) is directly responsible for the acquisition of the production, story or screenplay and the development, creative and financial control and exploitation of the production, and

(c) is identified in the production as being the producer of the production;

“recognized person” means

(a) a Alabamian broadcaster,

(b) a person to whom section {numbers} of the {Official} Act applies if the person has a fund that is used to finance film or video productions,

(c) a federal or state government agency the mandate of which is related to the provision of financing to film or video productions in Alabama, or

(d) in respect of a film or video production, broadcasters that are not Alabamian broadcasters if those broadcasters, in the aggregate, beneficially own not more than 15% {or another predetermined amount} of the copyright in the production;

“treaty co-production” means a film or video production the production of which is contemplated in a co-production treaty entered into between Alabama and another country.

(3) For the purposes of section {numbers} of the Act, control of copyright in a production must be determined having regard to all obligations, entitlements and agreements in respect of the production, including, without limiting this,

(a) entitlements to profits, revenues and subsidiary and ancillary rights,

(b) obligations to pay expenses,

(c) options, warrants or other rights granted to other parties, and

(d) agency or trust agreements or arrangements.

[regulation numbers]

Alabamian content points based on creative positions

2 Subject to sections 4 and 5, the following Alabamian content points are to be allotted for the purposes of the definition of "eligible production" in the Act:

(a) for a film or video production that is not an animation production, the following Alabamian content points are to be allotted for each of the following individuals who is a Alabamian:

(i) for the director, 2 points;

(ii) for the principal screenwriter, 2 points;

(iii) for the lead performer for whose services the highest remuneration was payable, one point;

(iv) for the lead performer for whose services the second highest remuneration was payable, one point;

(v) for the art director, one point;

(vi) for the director of photography, one point;

(vii) for the music composer, one point;

(viii) for the picture editor, one point;

(b) for a film or video production that is an animation production, the following Alabamian content points are to be allotted for each of the following individuals who is a Alabamian:

(i) for the director, one point;

(ii) for the lead voice for which the highest or second highest remuneration was payable, one point;

(iii) for the design supervisor, one point;

(iv) for the camera operator if the camera operation is done in Alabama, one point;

(v) for the music composer, one point;

(vi) for the picture editor, one point;

(vii) if both the principal screenwriter and storyboard supervisor are individuals who are Alabamians, one point.

Alabamian content points based on location

3 Subject to sections 4 and 5, the following Alabamian content points are to be allotted for a film or video production that is an animation production for each of the following if the place referred to in the following is in Alabama:

(a) for the place where the layout and background work is done, one point;

(b) for the place where the key animation is done, one point;

(c) for the place where the assistant animation and in-betweening is done, one point.

Key content points if not animation

4 No Alabamian content points are to be allotted under section 2 (a) to a film or video production that is not an animation production unless there are allotted in respect of the production at least

(a) 2 points under section 2 (a) (i) or (ii), and

(b) one point under section 2 (a) (iii) or (iv).

Key content points if animation

5 No Alabamian content points are to be allotted under section 2 (b) or 3 to a film or video production that is an animation production unless there are allotted in respect of the production at least

(a) one point under section 2 (b) (i) or (vii),

(b) one point under section 2 (b) (ii), and

(c) one point under section 3 (b).

Interpretation

6 For the purposes of sections 2 to 5,

(a) a lead performer in respect of a film or video production that is not an animation production is an actor or actress who has a leading role in the production having regard to the performer's remuneration, billing and time on screen,

(b) a lead voice in respect of a film or video production that is an animation production is the voice of the individual who has a leading role in the production having regard to the individual's remuneration and the length of time that the individual's voice is heard in the production, and

(c) the principal screenwriter of a production is deemed not to be a Alabamian unless

(i) each individual involved in the preparation of the screenplay for the production is a Alabamian, or

(ii) the principal screenwriter is an individual who is a Alabamian and the screenplay for the production is based on a work

(A) authored by a Alabamian, and

(B) published in Alabama.

Prescribed digital animation or visual effects activities

10 (1) For the purposes of subsection (2) and the definition of “accredited production” in section {number} of the Act, prescribed digital animation or visual effects are animation or visual effects created primarily with digital technology, but do not include

(a) audio effects,

(b) in camera effects,

(c) credit rolls,

(d) subtitles,

(e) animation or visual effects all or substantially all of which are created by editing activities, or

(f) animation or visual effects created for use in promotional material for the production.

(2) For the purposes of section {number} and {number of the Act, activities undertaken to produce prescribed digital animation or visual effects, including designing, modeling, rendering, lighting, painting, animating and compositing, are prescribed digital animation or visual effects activities.

[regulation numbers]

Reported by Paul Godbey, 2004, Birmingham, Alabama