Jobs Act Incentives: This discretionary program offers credits for job creation and capital investment. To qualify, businesses that operate chemical manufacturing, data center, metal/machining or toolmaking, engineering, design, and research facilities must create net new jobs but are not subject to a specific minimum job creation requirement. Businesses that do not operate within the aforementioned industry sectors must create a minimum of 50 jobs (25 in a Targeted County). If approved by the Governor, companies may claim the following credits:
Alabama Renewal Act: Port Credit: This discretionary program offers a one-time tax credit for increased usage of Alabama public ports. The credit is up to $50 per TEU, $3 per net ton or $0.04 per net kilogram. The credit may be taken against Alabama income tax liability and can be carried forward for five years. New distribution or warehouse shippers investing at least $20 million and creating at least 75 net new jobs are eligible to receive up to $100 per TEU over a 3-year period if entering into a project agreement with the state.
Full Employment Act of 2011: Businesses with 50 or fewer employees may receive a one-time, non-refundable tax credit equal to $1,000 for every new job created earning over $10 per hour.
Sales and Use Tax Abatement: Discretionary abatement of non-education portion of sales and use taxes on construction materials, equipment and other capitalized costs.
Property Tax Abatement: Discretionary abatement of the non-educational portion of property tax for up to 20 years.
Enterprise Zone Credit /Exemption:
Businesses that locate in an Enterprise Zone may receive a tax credit or tax exemption for new job creation (up to $2,500 per permanent job), investment tax credits, training grants of up to $1,000 per new employee and an exemption of sales and use tax on purchases of construction materials. Employers with existing facilities in an Enterprise Zone that create at least 5 new jobs may also receive incentives.
Employer Education Credit: Tax credits are available to businesses that provide approved basic skills education to Alabama resident employees. The credit is 20% of the actual costs, limited to the employer’s income tax liability. Certain requirements must be met.
Last updated: April 2017