Alabama legislators continually seek ways to improve economic opportunities in the state across several different industries, including entertainment. Last month, Governor Kay Ivey signed SB177, expanding Alabama’s entertainment tax incentive program. The goal of this plan is to accelerate growth in Alabama’s film, television, and music industries.

SB177, which takes effect October 1, 2025, expands the scope of the Entertainment Industry Incentive Act of 2009. The new law officially renames the Alabama Film Office as the Alabama Entertainment Office and significantly broadens the types of productions eligible for state incentives.

For the first time, music productions are now considered qualified productions eligible for incentives. The bill increases the overall annual cap for entertainment incentives to $22 million starting in the fiscal year 2026. It also sets aside $2 million specifically for music albums. Any unused incentives from the year may now carry over to the next fiscal year up to a total of $3 million.

With these updates, Alabama is making it easier for musicians and other creators to do business in the state—sending a clear message that the door is open for all kinds of creative talent.

The Alabama Entertainment Office will administer the program to promote the state’s growing entertainment industry.

Sherri Blevins is a staff writer for Yellowhammer News. You may contact her at [email protected].