Alabama Enhances Its Entertainment Tax Incentives
MUSCLE SHOALS, Alabama – Alabama is making headlines in the music industry with a significant expansion of its entertainment tax incentive program. Recent efforts from the Alabama Department of Commerce and the Alabama Entertainment Office have highlighted new opportunities for music creators, with the Muscle Shoals Songwriters Festival serving as a key promotional event.
The festival, which took place in November, attracted over 50 songwriters and hundreds of music enthusiasts from across the country. Iconic venues like Fame Recording Studios and The Shoals Theatre hosted performances that celebrated the rich musical heritage of Muscle Shoals.
State officials engaged with songwriters and industry representatives during the festival, participating in discussions about the newly-established Alabama Music Incentive. This program is specifically designed to attract and support music creators, offering financial reimbursement for those who decide to record in Alabama.
Grammy Award-winning songwriter Spooner Oldham, who performed at the festival and is a member of the Rock and Roll Hall of Fame, noted the growing awareness of the program. He remarked, “People keep hearing about the incentive and are asking, ‘What is that?’ It has a magical effect, and it is growing.”
Hit songwriter Matt Warren echoed Oldham’s sentiments, emphasizing the appeal of the incentives. He stated, “You have got to have material to put out for people to hear. 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 implemented earlier this year when Governor Kay Ivey signed legislation expanding the previous entertainment tax incentive program to include music productions. The Alabama Film Office has also been rebranded to the Alabama Entertainment Office to better reflect its broader mission.
The updated incentive structure will raise the annual cap to $22 million starting in Fiscal 2026, with $2 million earmarked specifically for music albums. Additionally, any unused incentives can now roll over into the next fiscal year, with a maximum of $3 million. This provision is expected to enhance the program’s efficiency and long-term impact.
As Alabama seeks to build a vibrant creative economy, Alabama Department of Commerce Secretary Ellen McNair shared that the state is home to a wealth of creative talent. She stated, “The expanded entertainment incentive program will help us grow that dynamic scene.”
Meghann Bridgeman, Chief Entertainment Officer of the Alabama Entertainment Office, participated in a panel discussion alongside Shoals record producer Charles Holloman, owner of East Avalon Recorders. The panel was moderated by Kevin Lamb at the Shoals Songwriter Workshop, which attracted songwriters and students from various regions.
Bridgeman emphasized the importance of the festival, saying, “The Songwriters Fest brings songwriters, musicians and music lovers together to inspire the next generation of music in Muscle Shoals. Alabama has been and will continue to be a music-making destination known around the world.” The festival’s organizers, including Executive Director Lillian Glanton, are eager to continue their partnership with the state to attract even more talent to the Shoals.
The Commerce Department served as the premier video partner for the festival, which has been ongoing for four years. Each year, the event generates significant economic benefits for the region as music fans and industry professionals converge on the area. This year’s lineup featured notable artists such as Chris Tompkins, Gary Baker, and Mark Narmore.
Oldham shared a hopeful encounter with a young songwriter at the festival, highlighting the enthusiasm for music creation. He said, “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.” For more information on Alabama’s incentives and programs, you can visit the official Alabama Department of Commerce website.