Alabama legislators continually seek ways to improve economic opportunities in the state across several different industries, including entertainment. During the 2025 legislative session, the state passed a law aimed at boosting Alabama’s music industry.

HB373, 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 albums are now considered qualified productions. To be eligible, albums must have at least $30,000 in production expenses, and incentives are capped at $200,000 per project. Music videos and soundtracks also qualify under specific spending thresholds.

The bill increases the overall annual cap for entertainment incentives from $20 million to $30 million starting in fiscal year 2026. It also sets aside $2 million each year specifically for music albums until July 1, after which any unused funds can be used for other productions. Up to $3 million in unspent incentives can also carry over to the next year.

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.

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