Alabama Capital Investment Tax Credit makes capital investment more attractive for a broad range of sectors and applications. Eligible companies receive an annual state corporate income tax credit of up to 5% of capital invested in new or expanding facilities. Those eligible may utilize this credit for up to 20 years, limited by the firm’s actual corporate state income tax liability.
Favored Geographic Zone encourages growth in areas of Monroeville by allowing companies to take advantage of the Alabama Capital Investment Tax Credit at lower investment and job creation thresholds.
“Made in Alabama” Jobs Incentive allows qualifying companies to receive a transferable income tax credit to offset import tariff costs during local construction process.
New Markets Tax Credit (NMTC) State Income Tax Incentive is a separate incentive provided by the State of Alabama for qualified projects which permits individual and corporate investors to receive a tax credit against their State of Alabama income tax liability in exchange for making equity investments in Community Development Entities (CDEs). The credit totals 50 percent (zero percent the first credit allowance date and 8.33 percent for each of the next credit allowance dates).
State Enterprise Zone Credit allows for a maximum credit of $2,500 per permanent new employee, to be applied against the income tax and/or business privilege tax liability of the company, provided specific requirements have been met. The credit may be used in the year earned and can be forwarded up to two consecutive years from year earned.
State Enterprise Zone Exemption provides exemptions from sales and use tax (on purchases of construction related materials, machinery, and equipment used in the zone), income tax, and/or business privilege tax at the Enterprise Zone for five years, provided specific requirements have been met. Companies can choose to exempt 100% of the income tax, business privilege tax, or sales and use tax at the Enterprise Zone and 50% of the company’s choice of the two remaining taxes.