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Tom is a filmmaker, producer, and marketing specialist based in Los Angeles.
At Wrapbook, we pride ourselves on providing outstanding free resources to producers and their crews, but this post is for informational purposes only as of the date above. The content on our website is not intended to provide and should not be relied on for legal, accounting, or tax advice. You should consult with your own legal, accounting, or tax advisors to determine how this general information may apply to your specific circumstances.
Part of Alabama's appeal for filmmakers lies in its rich tapestry of locations—from bustling urban centers like Birmingham and Mobile to the tranquil Appalachian foothills in the north and white sand Gulf Coast beaches to the south.
Whether you’re looking to recreate a sleepy Southern town, stage a coastal getaway, or even roll on a gritty urban backdrop, Alabama’s geographic and architectural diversity can double for almost any location, giving producers maximum creative flexibility.
And Alabama delivers more than just scenery—it offers cinematic soul. With a robust and growing production infrastructure, professional, experienced local crews, and a deeply supportive state film office, Alabama provides filmmakers all the tools they need to succeed.
That’s why a number of major motion pictures have been filmed in Alabama, including Big Fish, 42, Selma, and Get Out. Recent star-studded independent features The Rivals of Amziah King and Neighborhood Watch were also shot largely in the state.
Alabama is no stranger to television production either, with shows including the 2021 reboot of ABC’s The Wonder Years, HGTV’s Home Town Takeover, and unscripted fare like Love in Fairhope and Love and Marriage: Huntsville also filming in Alabama.
Perhaps the biggest reason why Alabama has become such a production hub? The serious savings offered by robust Alabama film incentives.
Not only does the Alabama film tax credit program reduce production costs, it also underscores the state's dedication to attracting and retaining film projects.
Established under the Entertainment Industry Incentive Act of 2009, the Alabama film tax credit was designed to stimulate economic growth by attracting film and television productions to the state.
In the years since, the program has proven tremendously successful. Lawmakers have continued to update Alabama film tax incentives with several competitive enhancements to the program, the most recent updates coming in May 2025.
Currently, the Alabama film tax credit is administered by the Alabama Department of Commerce through the Alabama Film Office, which will officially become the Alabama Entertainment Office in late 2025—a new name to reflect the Office’s expanding services.
Let’s take a look at how Alabama film tax incentives help productions save.
The Alabama film tax credit program offers a fully refundable film tax credit of 25% to 35% on qualifying production expenses.
Alabama film tax incentives come in the form of refundable film tax credits, which means that the state commits to reimbursing production companies for the full amount of their tax credit—no need to transfer or sell the credit to another company with in-state tax liability.
In order to qualify for Alabama film tax credit, productions must meet the program’s minimum spending threshold and spend at least $500,000 on production in the state.
For soundtracks and music videos, the minimum spend threshold is reduced to $50,000 per project, with a per project cap of $300,000 for soundtracks and a per project cap of $200,000 for music videos.
The Alabama film tax incentives program receives $20 million in funding per fiscal year through the end of September 2025. Beginning in fiscal year 2026, the program’s annual funding will increase to $22 million per year.
Alabama film incentives also come with a uniquely structured project cap—only the first $20 million in project expenditures incurred within the state qualify for a film tax credit.
Alabama film tax incentives covers a wide array of content, including:
Beginning in October 2026, music albums will also be included as qualifying productions.
Albums with in-state production costs of at least $30,000 and up to $200,000 can qualify for the refundable tax credit, and $2 million of the program’s $22 million in annual funding will be set aside to incentivize music album production.
If you’ve made it to this point, you’ve probably determined that your production can qualify for Alabama film incentives. Congrats! You’re on your way to savings.
But where specifically will you find this savings? Which production expenses count toward your overall Alabama film tax credit?
Fortunately, the short answer is that almost all production spending incurred in the state of Alabama can qualify for Alabama film tax incentives.
Eligible expenditures include everything from cast and crew payroll to physical production expenses like location fees, vendor services, rentals, and prop and wardrobe purchases.
To really get a sense of how much your production can save, let’s break qualified expenditures down into two categories: payroll and production spend.
The first—and often largest—portion of production expenditures include cast and crew payroll. In Alabama, your rebate for payroll expenses will depend on the residency status of eligible cast and crew.
Compensation paid to Alabama residents, both above-the-line and below-the-line cast and crew, is eligible for a 35% credit. In order to receive the credit on resident payroll expenses, Alabama residents working for your production must fill out a Declaration of Residency form.
Additionally all compensation paid to nonresidents—again both above-the-line and below-the-line—can qualify for a 25% credit.
Nonresident compensation is capped based on position; however, you’ll only get 25% back on the first $1,000,000 paid to an above-the-line nonresident and 25% back on the first $500,000 paid to a below-the-line nonresident.
Physical production expenses comprise the other portion of qualified expenses for Alabama film tax incentives. Most physical production spend incurred in the state will also qualify for an Alabama film tax credit of 25%.
Eligible production expenses include everything from equipment rentals and location fees to set construction, wardrobe, and props.
Now that we’ve covered all the production expenses that can earn your project a film tax credit in Alabama, let’s talk about what you need to do in order to qualify for Alabama film incentives.
First, productions must include end credits acknowledging the support received from the state of Alabama. Screen credit isn’t just a formality—it’s a way to publicly recognize the partnership between your production and a state that’s actively investing in the entertainment industry.
While loan-out companies are not required to register with the state, they must still complete a Loan-Out Company Affidavit acknowledging that compensation was received for services performed in Alabama.
Once principal photography wraps and your final spend is tallied, a CPA audit is also required to validate all qualified expenditures. This audit helps the Alabama Film Office confirm your eligibility and ensures that taxpayer-funded incentives are distributed accurately and responsibly.
Finally, before any funds are released, productions must also secure a Certificate of Compliance from the Alabama Department of Revenue. This document affirms that your production has met all state tax obligations.
Think you’re ready to apply for an Alabama film tax credit? Here’s how:
1. First, the Alabama Film Office asks that all projects submit a Film Production Registration Form before submitting an application for Alabama film incentives.
2. Once you’ve registered, you can then submit an Application for Pre-Qualification for Incentives to the Alabama Film Office. This application must be submitted at least 30 days before production begins.
3. Along with your completed application, you’ll also need to include a nonrefundable $100 application fee.
The Alabama Film Office will then review your materials and determine whether your project qualifies as a state-certified production.
Over the course of your production, the Alabama Film Office will check in at least twice per year to evaluate your project’s progress and ensure continued compliance with the program. These touchpoints help maintain accountability and provide opportunities for ongoing support as your project moves forward.
After production wraps, submit your final documentation, including a CPA audit, to the Alabama Department of Revenue. This audit will verify all qualified expenses—and once reviewed and approved—trigger the issuance of your rebate.
With just a little planning and attention to detail, the application process for Alabama film incentives can be a smooth and rewarding experience. Stay organized, communicate early, and you’ll be on your way to maximizing the Alabama film tax credit.
With its generous incentives, cinematic landscapes, and can-do spirit, Alabama isn’t just a great place to shoot—it’s a smart place to save.
The Alabama film tax credit offers tangible financial benefits, while the state’s strong crew base and steadily growing infrastructure make it easy to hit the ground running. Whether you’re mounting a full-scale feature, cutting a killer music video, or prepping a polished docuseries, Alabama film incentives can help turn your vision into reality without breaking the bank.
To see how the Alabama film tax credit stacks up against other programs nationwide, head over to Wrapbook’s Production Incentive Center. It's the easiest way to explore your options, crunch the numbers, and keep your next production rolling smoothly from scene to screen.
Stand beneath the moss-draped oaks of Mobile or wander through the Appalachian foothills north of Birmingham and it’s easy to understand Alabama’s allure.
Pair the state’s stunning natural beauty with its skilled local crews and film-friendly communities and it’s even easier to see why Alabama has quietly become one of the South’s best-kept secrets for film and television production.
Central to Alabama’s filmmaking appeal is the Alabama film tax credit, which provides substantial financial benefits to productions that choose the Yellowhammer State as their backdrop.
In this guide, we’ll cover everything you need to know about the Alabama film tax credit—how it works, what production expenses qualify, and how to apply—so you can unlock the full potential of filming in this underrated production powerhouse.
Before we take a detailed look at the Alabama film tax credit program, we invite you to explore Wrapbook’s Production Incentive Center. This comprehensive resource provides interactive, state-by-state breakdowns of film tax incentive programs offered all across the U.S.
With the State Incentive Map, easily navigate incentive options across the country. Or try the Incentive Comparison Tool and compare film tax incentives from different states side-by-side.
Whether you're searching for something specific about Alabama film incentives or comparing popular programs like those in Georgia, Louisiana, or New Mexico, the Production Incentive Center provides the insights needed to make informed decisions for your next production.
