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Alabama incentives & credits

Jobs and investment credits for qualifying new or expanding
industrial projects with at least 50 Alabama jobs

JOBS CREDIT

  • 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

INVESTMENT CREDIT

  • 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.

  • Chemical Manufacturing

  • Research

  • Engineering & Design

  • Data Centers

  • 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:

ABATEMENTS

  • 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.