MONTGOMERY, Alabama — Governor Kay Ivey has signed into law a major expansion of Alabama’s entertainment tax incentive program, aimed at accelerating growth across the state’s film, television, and now music sectors.
Senate Bill 177 modernizes the Entertainment Industry Incentive Act of 2009 by extending support to music productions, setting realistic thresholds and establishing greater fiscal flexibility and oversight.
The legislation also officially rebrands the Alabama Film Office as the Alabama Entertainment Office, reflecting its broader mission to support an additional facet of the state’s creative economy.
“Alabama has long been home to great storytelling and timeless music,” Governor Kay Ivey said. “With this expansion, we’re putting a modern spotlight on Alabama’s creative talent and helping our state compete for projects that bring good jobs, new investment and a renewed sense of pride in our entertainment heritage.”
A ceremonial bill signing held by Governor Ivey last week attracted several music industry figures, including Rodney Hall of Muscle Shoals’ Fame Studios, Debbie Wilson of Muscle Shoals Sound, Kelly McDonald of the Alabama Music Hall of Fame, Huntsville Music Officer Matt Mandrella and Grammy Award winning musician/songwriter Gary Baker.
Several figures from Alabama’s film and television industry were on hand, including actor/producer Clayne Crawford, a native of Clay who has been an active supporter of elevating the state’s profile for entertainment productions.
“Alabama has everything it needs to become a powerhouse for film, television and music — from incredible locations and homegrown talent to a deep well of cultural authenticity,” Crawford said.
“This expansion of the entertainment incentives is a game-changer. It shows the world that Alabama is serious about building a creative economy — not just for outsiders to visit, but for our own artists, storytellers and musicians to thrive right here at home,” he added.
Also present were state Rep. Jamie Kiel and Sen. Lance Bell, two of the legislation’s sponsors.
‘Sharper edge’
The updated incentive structure for the Alabama Entertainment Office raises the annual cap to $22 million beginning in Fiscal 2026, with $2 million specifically reserved for music albums.
Any unused incentives may now carry forward into the next fiscal year, up to $3 million — a key provision that strengthens the program’s efficiency and long-term impact.
“This legislation gives Alabama a sharper edge in attracting entertainment projects, especially in music and digital media,” said Ellen McNair, Alabama Department of Commerce Secretary.
“We’re building the infrastructure, talent pipeline and policy framework needed to grow a sustainable creative economy right here at home.”
The bill establishes minimum expenditure thresholds tailored for music and album production, creating realistic entry points for independent artists while maintaining oversight and accountability for larger-scale projects.
These changes make Alabama more competitive with other states offering aggressive entertainment incentives.
“This is a defining moment for Alabama’s creative industries,” said Meghann Bridgeman, Chief Entertainment Officer of Commerce’s newly renamed office. “By welcoming music into the incentive program, we’re telling independent musicians, producers, and entrepreneurs that they have a future here — and we’re backing that promise with real investment and opportunity.”
The Alabama Entertainment Office will oversee program administration, industry engagement and continued efforts to cultivate homegrown talent across the state’s growing entertainment sectors.
