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FISCAL NOTE
House Bill 373
Committee: Economic Development and
Tourism
Sponsor: Representative Jamie Kiel
Analyst: Jennifer Farish Date: 04/01/2025
House Bill 373 as introduced could decrease potential income and sales tax receipts to the
Education Trust Fund and lodgings tax receipts to the State General Fund and the Alabama
Tourism Department by an undetermined amount dependent upon the amount of rebates and tax
exemptions provided to qualified production companies pursuant to the following changes to the
Entertainment Industry Incentive (EII) Act of 2009 provided by this bill: (1) increasing the
maximum production expenditure threshold eligible for a rebate by $5 million for a total cap of
$25 million; (2) providing rebates for certain production expenditures for music albums of
greater than $30,000, up to $200,000; and (3) increasing the aggregate cap on incentives
authorized by the EII Act by $10 million for an aggregate annual cap of $30 million, for fiscal
year 2026 and thereafter.
This bill would also: (1) reserve $2 million of the annual aggregate cap for the production of
music albums, with exceptions; and (2) allow up to $3 million of unspent incentives to be
carried forward to the following fiscal year.