Secretariat

U.S. State Programs for New Investments

Available Investment Programs

Alabama

Taxes

• Capital investment tax credit incentive program permits qualified companies to claim tax credits against state income tax at 5% of capital investment per year for up to 20 years.
• New and expanding industries can be granted property tax exemption on all real and personal property, as well as business inventory, including all materials, for up to 10 years.
• Industrial projects may be exempt from property taxes for up to 10 years with fixed assessment ratio established at 20% of appraised value for manufacturers.
• Reduced sales and use tax rate of 1.5% on new machinery in manufacturing - 4% on all other equipment and construction materials not used in manufacturing.
• Sales and use tax on all building materials, machinery, and equipment may be exempt when financed with Industrial Development Bonds and used for industrial projects.
• Tax exemptions and/or deductions for pollution control equipment, construction materials, and facilities are available.

Employee Training

• Employers providing or sponsoring approved basic skills training education programs may receive a 20% credit on state corporate income taxes.
• Alabama Industrial Development Training offers programs for employee recruitment, training (pre-employment and upgrading), and employee development at no cost to employer.

Financing

• The Industrial Development Revenue Bond Program reduces project financing interest costs for companies through the issuance of taxable and tax-exempt bonds - the bonds are issued by cities, counties, and their agencies and the funds collected through the bond sale may be used for purchase and construction of real property, machinery, and equipment.
• Regional development organizations assist in securing loan assistance.
• Federal loan guarantees available for majority of Alabama counties.
• Community Development Block Grants provided by the State to counties and municipalities, through issuance of tax-exempt bonds, can be used for funding development of and/or improvements to water, sewer, and road facilities in order to attract investment projects.
• Alabama Industrial Development Authority makes grants to counties and municipalities to cover portions of the costs associated with infrastructure improvements for industrial sites

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