- Enterprise Zone Program offers businesses locating within a designated enterprise zones a maximum credit of up to $2,500 per new, permanent employee hired pursuant to the Act; or may be eligible for discretionary sales and use, income, and business privilege tax exemptions for up to five years, and the credit amount is calculated based upon number of jobs created and increment formula, capital investment levels, and employee training costs.
- Industrial Access Program funds non-retail projects creating new investment and jobs with a project that needs new access must be on public right-of-way, allow normal public use, and comply with state standards for usage of funds, the project must acquire a local sponsor responsible for the project, and funding may not exceed the estimate cost of the project.
- Jobs Act Investment Credit is a discretionary program allowing an eligible company to receive a credit of up to 1.5% annually of the qualified capital investment in an approved project for up to 10 years (projects in a target or jumpstart county may receive the credit for 15 years). The credit can be taken against the Alabama income tax liability, financial institution excise tax liability, utility taxes paid, and/or state 2.2% utility license tax. The credit has a five-year carry forward.
- Jobs Act Jobs Credit is a discretionary program allowing an eligible company a cash rebate of up to 3% annually of the previous year’s payroll (not including fringe benefits) for eligible employees in Alabama for up to ten years. For companies employing at least 12% veterans, up to an additional 0.5% credit is available for the wages of veterans. Technology and underrepresented companies may receive an annual amount of up to 4%. Further, up to an additional 1% of the credit is available for companies in targeted counties.
- Alabama offers a one-time, non-refundable, non-transferable tax credit of up to $1,000 for each new job created by small businesses located in Alabama.
- Industrial Access Program funds non-retail projects creating new investment and jobs with a project that needs new access must be on public right-of-way, allow normal public use, and comply with state standards for usage of funds, the project must acquire a local sponsor responsible for the project, and funding may not exceed the estimate cost of the project.
- Alabama provides for an apprenticeship tax credit in the amount of up to $1,250 per qualified apprentice (up to 10 apprentices annually) is available to employees who employ a qualified apprentice for at least 7 full months of the taxable year. Companies that employ a qualifying apprentice under the age of 18 may qualify for an additional $500 credit. The credit is nonrefundable, nontransferable, and cannot be carried forward.
- Alabama provides for a refundable tax credit equal to 50 percent of an eligible taxpayer’s qualified railroad rehabilitation expenditures.
- Brownfield Development Tax Abatement Act gives cities and counties the ability to abate the following: Non-educational city and county sales and use taxes; Non-educational state, city and county property taxes – up to 20 years; and Mortgage and recording taxes.
- Growing Alabama Credit provides incentives to eligible Alabama taxpayers making contributions to Economic Development Organizations (EDO) for approved qualifying projects.
- Alabama’s offers state and local sales and property (non-educational portion only) abatement of taxes up to 10 year for data center projects investing up to $200M within 10 years from commencement of the project; 20 years for projects that invest over $200M but less than $400M within 10 years from the commencement of the project; and 30 years for projects that invest over$400M within 20 years from the commencement of the project. Data center projects must create at least 20 jobs with an average annual compensation of $40,000, including benefits to qualify for the abatements.
- Alabama Port Credit is a non-refundable, non-transferable discretionary credit incentivizing businesses to utilize Alabama’s port facilities with a one-time credit can equal up to $50 per twenty-foot-equivalent, $3 per net ton of bulk cargo, $0.04 per net kilogram for air-cargo, or $2.91 per vehicle equivalent unit (VEU); the credit may be carried forward for five years and may be applied against Alabama income tax liability, and to be eligible, the port user must engage in manufacturing, warehousing, or distribution, ship more than 10 TEU’s, 75 net tons, or 400 VEU for cargo measured by VEU or 15,000 kg of air cargo, and increase shipping volume of its cargo by more than 105% over the prior year
