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Incentives

If you’re looking to plant your business in one of the eight Southeast Alabama counties, tax incentives may be just the thing you need to make your move a reality. Tax incentives are available for new, existing or expanding companies in most counties in Alabama.

Job Acts Incentives

Jobs Credit

Annual cash refund up to 3% of the previous year’s gross payroll for up to 10 years. In most cases, a project must generate up to 50 new jobs to qualify. If the desired county has a population of less than 25,000, the Jobs Credit incentive increases from 3% to 4%, and the length of the Investment Credit expands from 10 years to 15 years.

Investment Credit

Credit of up to 1.5% of the qualified capital investment costs for up to 10 years. Credit can be taken against the Alabama income tax liability and/or utility tax liability. For companies selling their output nearby, the credit is available for up to 15 years.

Reinvestment and Abatements Act

New Facility and Expansion

Abatement of non-educational portion of sales and use taxes on construction materials equipment and other capitalized costs. For the non-educational portion of the property tax, increases can be abated for up to 20 years. May also qualify for Jobs Acts Incentives.

Existing Facility: Refurbishments, Upgrades, or Placed Back in Service

Abatement of non-educational portion of sales and use taxes on construction materials, equipment and other capitalized costs. Abatement for up to 20 years of the non-educational portion of the incremental property tax increases. Abatement from taxes for increased utility services for up to 10 years. Includes AIDT worker training and the company may not apply for Jobs Act incentives.

Property Tax Abatement

New and expanding businesses qualify for the abatement of all the state and local non-educational portion of the property taxes. This includes all real and personal property incorporated into a qualifying project, for up to 20 years. Data processing center projects can receive an extended reduction for up to 30 years, contingent on total capital investment in a project.

Sales and Use Tax Abatements

Companies can abate all state and local non-educational portion of the sales and use taxes on the acquisition, construction and equipping of a qualifying project. For an extended reduction, data processing center projects qualify if they deal with constructing and equipping a project, including refresh, for up to 30 years. The incentive is contingent on total capital investment in a project.

Full Employment Act Credit

Employers with less than 50 employees are eligible for a $1,000 nonrefundable income tax or financial institution excise tax credit for each job created that qualifies under the Full Employment Act Credit.

Heroes for Hire Credit

Employers may qualify for a one-time $1,000 nonrefundable income tax credit, if they meet the requirements for the Full Employment Act and the employee is a qualifying veteran.

Net Operating Loss Carryforward

Companies are able to carry forward any operating losses for up to 15 years.

Alabama Enterprise Zone Credit

Credits and exemptions are available for businesses in depressed areas of the state and based on numbers of employees.

Other Incentives

Income Tax Education Credit

Allows an employer to take a tax credit for 20% of the cost of an employer-sponsored program to improve basic skills through the high school level.

Growing Alabama Credit

Approved projects are funded when taxpayers make contributions to a local economic development organization. Taxpayers receive a tax credit equal to their contributions. The tax credit may off­set the taxpayer’s income tax liability, up to 50%. Credit can be carried forward for 5 years.

The Southeast Alabama Council for Economic Development is a consortium of counties actively working together to
GROW SOUTHEAST ALABAMA

Barbour County, AL | Coffee County, AL | Covington County, AL | Dale County, AL | Geneva County, AL | Henry County, AL | Houston County, AL | Pike County, AL

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