Alabama incentives & credits
Jobs and investment credits for qualifying new or expanding
industrial projects with at least 50 Alabama jobs
Annual cash payments of up to 3 percent of last year’s payroll for new employees
Available for up to 10 years
Amounts are paid as refunds of taxes for utility services; not dependent on utility taxes actually owed or paid
Annual credits for up to 1.5 percent of capital invested
Available for up to 10 years, with up to 5 years of carry forward
The first 3 years may be transferred
Credits may offset income, utility gross receipts, insurance and bank taxes, including taxes owed by existing operations
These credits can apply to projects involving the following sectors regardless the number of jobs.
Engineering & Design
Metal and Machining Technology or Toolmaking
Alabama reinvestment incentives for existing companies
Available to qualifying industrial expansions investing at least $2 million
For the first time, Alabama’s incentives cover capitalized replacement and maintenance property, as follows:
City, County and State non-educational sales and use tax abatements are available on construction materials and manufacturing machinery.
Non-educational property taxes may be abated for up to 20 years (limited to the incremental increase in such taxes if the property does not perform a new function).
UTILITY TAX CREDITS
Cash refunds for incremental increase in utility gross receipts tax due to increased energy use.
Available for up to 10 years.
IMPORTANT THINGS TO KNOW
Regardless of the length of the abatement, City, County and State non-educational property tax abatements may only be granted by the consent of each governing authority.