Ad Valorem Property Tax Abatement
Qualified companies receive an abatement of the non-education portion of a company’s real and personal ad valorem property taxes for up to 10 years. To qualify, manufacturers must have a capital investment of at least $2 million, or in the case of expansions, the lower of $2 million or 30% of the original investment. The assessment ratio in Alabama is 20% of market value. See millage rates*.
Qualified companies receive an abatement of the non-education and non-hospital portion of city, county, and state sales tax on the purchase of construction materials. Eligibility requirements are the same as for ad valorem tax abatement.
- City, County, & State Total Mills: 31.00 mills
- City, County, & State Education/Hospital Mills: 17.00 mills (may not be abated)
- City, County, & State Non-Education and Non-Hospital Mills: 14.00 mills (may be abated)
Industrial Revenue Bonds
- May finance up to 100% of real estate and/or equipment costs