Alabama’s entertainment tax incentive program expands

Incentives now cover music productions

Muscle Shoals Sound Studio is a key player in Alabama’s music production scene.

Gov. Kay Ivey has signed into law a major expansion of Alabama’s entertainment tax incentive program, aimed at growing the state’s film, television and music sectors.

The law builds upon the Entertainment Industry Incentive Act of 2009, adding music productions to the types of work eligible for incentives.

“Alabama has long been home to great storytelling and timeless music,” 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.”

The updated incentive structure for the Alabama Entertainment Office raises the annual cap to $22 million beginning in fiscal year 2026, with $2 million specifically reserved for music albums.

“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.”

- Sponsor -

The latest Alabama business news delivered to your inbox