Income Tax Capital Credit: Provides companies with a tax credit of 5% of the capital costs of a qualifying project, to be applied to the Alabama income tax liability or financial institution excise tax generated by the project income, each year for 20 years. This credit cannot be carried forward or back and cannot be used to generate a refund to the taxpayer.
Employer Education Credit: Provides tax credits to employers who 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.
Capital Grant: A discretionary grant available to competitive projects based on the level of new job creation and investment.
Enterprise Zone: Projects locating in an Enterprise Zone are eligible to receive certain incentives including tax credits or exemption for income tax (up to $2,500 per new permanent employee hired), state income or business privilege tax credits for new investments, training grants (up to $1,000 per new permanent employee), sales and use tax exemptions on purchases of construction/improvement materials for a period of five years. Employers with existing facilities in the zone may also receive tax credits if they have hired at least five new permanent employees in the zone.
Municipalities in Alabama have the discretionary authority to provide certain incentives including property tax abatements.