Tax News

CCH (cch.taxgroup.com) reports:

  Alabama Gov. Bob Riley has signed legislation which provides a rebate for qualified production companies for purposes of personal and corporate income taxes. A qualified production company is entitled to a rebate for production expenditures equal to 35% of payrolls paid to Alabama residents and 25% of other production costs. The total expenditures for a project must be at least $500,000 and not exceed $10,000,000. Where the project is limited only to the production of a soundtrack used in a motion picture, expenditures must be at least $50,000 and not exceed $300,000 to qualify for the rebate. The rebate may be applied to any income tax liability applicable to a qualified production company. The aggregate limit on rebates available for 2009 is $5,000,000. The aggregate limit increases to $7,500,000 for 2010 and $10,000,000 for subsequent years.

  The Act also adds new code sections relating to income taxes, investment partnerships and limited liability companies. Specifically, certain pass-through entities must file composite income tax returns and make composite payments on behalf of their nonresident members. The income tax is imposed at the highest marginal rate on the nonresident members' distributive share of Alabama income.

  Sales and use tax provisions (TAXDAY, 2009/03/26, S.2) and miscellaneous tax provisions (TAXDAY, 2009/03/26, S.3) are covered in related stories.

  Subscribers can view the legislation.

 
H.B. 69, Laws 2009, effective March 24, 2009, applicable retroactively to January 1, 2009