fDi Atlas logo

List of incentives available in this location for quick easy reference below.

Incentives

Table key

• Incentive offered
• Incentive not offered
• Did not submit information

Cash grants/incentivesMore [+]Less [-]
Industrial Development Grant Program (Site Preparation) are grants to counties, municipalities, local industrial development boards or authorities or economic development councils or authorities, airport authorities, port authorities or public corporations to pay for site preparation for land owned or possessed by lease by these entities. Appalachian Regional Commission and Delta Regional Authority Grants. USDA Rural Development in Alabama.
Tax exemptionsMore [+]Less [-]
STATE CORPORATE INCOME TAX - The corporate income tax rate is 6.5%. With a net effective rate of 4.52% it is one of the lowest corporate income tax rates in the nation. INCOME TAX CAPITAL CREDIT - For qualifying companies, the State allows a 5% annual credit of capital costs of qualifying project each year for 20 years. SALES & USE TAX ABATEMENTS & EXEMPTIONS – Alabama’s sales and use tax statutes contain four state rate differentials which include: 1.5% for manufacturing and farm machinery, 2% for automotives, 3% for food sold through vending machines, and 4% for all other items. Local governments may also impose sales and/or use tax. Cities, counties, and public authorities are granted the authority to abate 100% of the state sales and use tax and the non-educational county and city sales and use tax on construction-related materials and equipment for qualifying projects. PROPERTY TAX & ABATEMENTS - Alabama limits the state millage rate on both real & personal property to 6.5 mills or US$6.50 for every US$1,000 of assessed value (20% of fair market value). Local authorities may abate mortgage & recording taxes. BUSINESS PRIVILEGE TAX CAP - The maximum business privilege tax for most business entities is US$15,000. The exceptions are for financial institutions, financial institution groups, and insurance companies that have a maximum business privilege tax of US$3 million. NO INVENTORY TAX - Alabama does not levy property tax on inventory. Raw materials and good-in-process are also exempted. ALABAMA ENTERPRISE ZONE CREDIT - Enterprise zone incentives in the form of credits and exemptions are offered to help encourage economic growth to 28 areas in Alabama that are considered economically depressed. BROWNFIELD DEVELOPMENT TAX ABATEMENTS - The Brownfield Development Tax Abatement Act gives cities and counties the ability to abate non-educational city and county sales and use taxes; non-educational state, city and county property taxes for up to 20 years; and mortgage and recording taxes. To receive an abatement for any or all of these taxes, the property must be in the Alabama Department of Environmental Management’s voluntary cleanup program to qualify and the business must follow certain procedures, as determined by law and regulation.
Property assistance / other fiscal incentiveMore [+]Less [-]
Community Development Block Grant/Loan Program is available to all eligible communities for projects supporting the creation or retention of jobs. Grants may be available for site preparation, water and sewer improvements, and industrial roads and bridge access for qualifying projects. Industrial Revenue Bonds financing can be available for part or all of the cost of land acquisition, site preparation, construction, equipment and other basic costs for qualifying new or expanding projects.
Training and labor market assistanceMore [+]Less [-]
ALABAMA INDUSTRIAL DEVELOPMENT TRAINING - Alabama industrial Development Training (AIDT) services are provided at no cost to employers or trainees. AIDT recruits potential employees through advertisements and announcements, collects applications through Alabama Career Centers and other locations, assesses applicants through screening, and assists with interviews. Applicants who successfully complete AIDTs job-specific training are recommended for employment with the company for whom the services is provided. GOVERNORS OFFICE OF WORKFORCE DEVELOPMENT - Coordinated training and workforce development initiatives across post-secondary and other resources.
Loan guarantees, cheap loans or financeMore [+]Less [-]
Economic Development Revolving Loan Funds. Fixed rate financing, at below market rates. TVA Economic Development Loan Fund. Revolving loan program designed to stimulate investment and job creation in the TVA region. USDA Rural Development in Alabama Loan guarantees. Small Business Administration (SBA) Loans.
Exemptions from regulationsMore [+]Less [-]
Some localities offer reduced or free business licenses for a period of time.
Target sectorsMore [+]Less [-]
Automotive Aerospace Advanced Technologies
Sectors specific incentives

Sponsorship

If you are the authorised promotions agency for Alabama and would like to have your location highlighted on fDi Atlas, you can contact our sales team on + 44 (0) 207 775 6667 or contact us here.