A major expansion of Alabama’s entertainment tax incentive program is turning heads in the music industry.

Representatives of the Alabama Department of Commerce and the Alabama Entertainment Office have been promoting the new opportunities, and the Muscle Shoals Songwriters Festival was a recent stop.

The festival, held in November, drew more than 50 songwriters and hundreds of music lovers from across the U.S. Venues included Fame Recording Studios and The Shoals Theatre, where iconic Muscle Shoals songwriters delivered memorable performances.

State officials mingled with songwriters and industry executives and also participated in a panel discussion. They outlined the newly-launched Alabama Music Incentive, which is designed to attract and support music creators and offers financial reimbursement to those who choose to record in Alabama.

Grammy Award-winning Shoals songwriter Spooner Oldham, a festival performer and member of the Rock and Roll Hall of Fame, said word about the program is spreading.

“People keep hearing about the incentive and are asking, ‘What is that?’” Oldham said. “It has a magical effect, and it is growing.”

Matt Warren, another hit songwriter and festival performer, said the incentives are an attractive option.

“You have got to have material to put out for people to hear,” he said. “Why would you not come to the Shoals or anywhere in the state to record, knowing about the incentive we now have?”

The new incentives were established earlier this year, when Gov. Kay Ivey signed into law an expansion of the previous entertainment tax incentive program, extending it to music productions. The legislation also officially rebranded the Alabama Film Office as the Alabama Entertainment Office to reflect the broader mission.

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.

In addition, 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.

The move gives Alabama another key tool in building a robust creative economy, Alabama Department of Commerce Secretary Ellen McNair said.

“Alabama already is home to a huge talent pool of creative minds and voices, and the expanded entertainment incentive program will help us grow that dynamic scene,” McNair said.

Meghann Bridgeman, Chief Entertainment Officer of the Alabama Entertainment Office, joined Shoals record producer Charles Holloman, owner of East Avalon Recorders, in the panel discussion that was moderated by Kevin Lamb at the Shoals Songwriter Workshop.

The workshop, held at The Mane Room within the University of North Alabama’s Department of Entertainment Industry, drew songwriters from across the Southeast, as well as students enrolled in UNA’s Music Business and Technology programs.

“The Songwriters Fest brings songwriters, musicians and music lovers together to inspire the next generation of music in Muscle Shoals,” Bridgeman said. “Alabama has been and will continue to be a music-making destination known around the world.”

Festival founder and Executive Director Lillian Glanton said organizers are looking forward to continuing the partnership with the state and bringing even more singer/songwriters to the Shoals in the future.

“We were honored to have the Alabama Department of Commerce at this year’s Muscle Shoals Songwriters Festival and the Shoals Songwriter Workshop,” Glanton said. “It was a tremendous opportunity to connect with songwriters and performers from all over the country and share why Alabama is an incredible place to create music because Alabama supports creators.”

The Commerce Department was the premier video partner for the festival, which was presented for the fourth straight year by the Renaissance Shoals Hotel and Spa. Each year, the festival generates a substantial economic impact, as music fans and industry professionals descend on the region.

Along with Oldham and Warren, this year’s lineup included Chris Tompkins, Gary Baker, Mark Narmore, James LeBlanc and more.

Oldham said he met a 20-year-old songwriter at the festival, who was full of excitement about the future.

“As long as people love music and are willing to put their heart and soul and a little time and money into it, it will keep happening,” he said.