Alabama Expands Entertainment Incentives to Boost Music and Film Industries

Senate Bill 177 (SB177) has now been signed by Governor Kay Ivey, significantly expanding Alabama's Entertainment Industry Incentive Act. The legislation, now known as Act 2025-414, seeks to attract more film and music productions to the State by increasing financial incentives and broadening the scope of eligible projects.

One of the notable changes is the renaming of the "Alabama Film Office" to the "Alabama Entertainment Office," reflecting the State's commitment to supporting a wider range of entertainment ventures beyond film. This change underscores Alabama's intent to become a competitive destination for various forms of media production.

The Act maintains the annual cap on incentives at $20 million. It also allows $2 million for music production, for a total cap of $22 million per year. Additionally, unspent funds can now be carried over to subsequent fiscal years, providing flexibility in funding future productions.

Significantly, the legislation includes music albums as qualified productions. Albums with production costs exceeding $30,000 and up to $200,000 may be eligible for rebates, further supporting Alabama’s music legacy.

The bill received unanimous support in both legislative chambers, passing the House with a 101-0 vote and the Senate with a 34-0 vote.

Industry professionals have expressed optimism about the bill's potential impact. Meghann Bridgeman, Chief Officer of the newly-renamed Alabama Entertainment Office, spoke with ALPolitics.com about SB177:

“We are excited about the passage of SB177, enabling the Alabama Film Office to expand our scope of entertainment industry incentives to include music production,” Bridgeman said. As the Alabama Entertainment Office, we hope to continue attracting outstanding projects, in music and film to our state, while sustaining, growing, and retaining Alabama's cherished creative talent.’

Jessica Moody, Chief Operations and Impact Officer of Create Birmingham/Film Birmingham told ALPolitics.com that, “The film industry is already a major economic driver in our region, and SB177 helps take it to the next level. By expanding the incentive cap and increasing the pool of funds available, Alabama can attract more (and bigger) productions that bring a greater investment to our city and more jobs to our community. This bill isn't just about new projects coming in; it's about keeping our local crew working year-round and building sustainable careers right here at home.’

Joshua Williams, co-owner and general manager of WorkPlay in Birmingham told WVTM13 that, "It’ll create jobs for Alabamians but also help Alabama compete." He highlighted that the expanded incentives could attract productions that previously went to neighboring states like Georgia and Louisiana.

SB177 will take effect on October 1, 2025.

For more information, the full text of the enrolled bill can be accessed HERE. A more complete summary of SB177 is HERE.