Committee adopts amendment to expand entertainment tax credit, adds funding for music production

The House Ways and Means Education Committee on Tuesday adopted an amendment to Senate Bill 177 that renames the state's film office and reallocates $2 million to music production credits, then gave the amended bill a favorable committee report.

Sen. Lance Bail, sponsor of the measure, told the committee the change includes "an increase having $2,000,000 for the entertainment, change in the name of the film office," and said the amendment moves funds specifically to music production. The committee 'led by Chairman Garrett 'approved the amendment and then recommended the amended bill favorably.

Why it matters: supporters said the shift aims to make Alabama more competitive with other states that have captured film and music production work. Committee members and Commerce officials said a more strategic program and a named state leader for entertainment could help the state win projects and related economic activity.

The amendment and committee discussion Chairman Garrett introduced the amendment, which reduces the bill's earlier proposed cap and designates an additional $2 million for music production credits. Representative Collins seconded the amendment; the chair called the voice vote and the amendment was adopted. Later, Representative Collins moved and Representative Drummond seconded a motion to give the amended bill a favorable committee report; that motion also passed by voice vote.

Commerce role, staffing and strategy Commerce staff told the committee the department recently hired a new film director with the title chief entertainment officer, Megan Bridgeman, who formerly worked at Create Birmingham. A Commerce speaker described Bridgeman as having both entertainment-industry experience and an economic-development background and said the department expects to develop a strategy to attract productions and related spending to Alabama.

Members' remarks Reverend (Representative) Ellis said local film shoots generate excitement and can boost downtown businesses, referencing a recent Hallmark production that filmed in his district. Supporters argued that the state had missed opportunities in the past when productions with Alabama ties were filmed in other states and that a strategic credit program plus dedicated staff could help capture more work.

What the amendment does (as described in committee) - Changes the name of the state office to the Alabama Entertainment Office. - Lowers the bill's overall cap to $22,000,000 (from the cap stated in the original bill language) and allocates an additional $2,000,000 within that cap for music production credits. - Leaves existing program mechanics otherwise unchanged as described during the hearing.

Next steps The committee gave the amended bill a favorable report to the full House. Committee members said Commerce will continue developing strategy and potential future proposals to complement the credit, including possible tax-capture measures or other incentives to attract productions.

Ending Committee leaders and members praised recent work by Commerce and the new entertainment director and said they expect more detailed strategy discussions in future sessions.