Jobs Act Incentives‍

This discretionary program offers incentives for job creation and capital investment.  To qualify, businesses that operate chemical manufacturing, data center, metal/machining technology or toolmaking, engineering, design, and research facilities must create net new jobs but are not subject to a specific minimum job creation requirement.  All other businesses with a qualifying business activity must create a minimum of 50 jobs (25 in a Targeted County).  If approved by the Governor, companies may claim either or both of the following incentives:

• Jobs Credit: Annual cash refund of up to 3% (4% in a Targeted County) of the previous year’s gross payroll for new eligible employees. An additional 0.5% can be claimed for projects located within a former active duty military installation closed by the Base Realignment and Closure (BRAC) process and another 0.5% for companies employing at least 12% veterans in their eligible workforce. The annual refund may be claimed for up to 10 years.
• Investment Credit: Tax credit of up to 1.5% of qualified capital investment.  The credit may be claimed for up to 10 years (15 years if located in a Targeted County and selling their output within 50 miles) and may be applied against Alabama income tax and/or utility tax liability. Unused credits may be carried forward for 5 years. If approved by the Governor, the first three years of the credit may be transferred to another Alabama taxpayer for at least 85% or more of face value.
• Deadline for executing agreements is December 31, 2020.

Port Credit‍

This discretionary program offers a one-time tax credit for increased usage of Alabama public ports. Shippers must be engaged in manufacturing, warehousing or distribution of goods. 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 5 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.

Growing Alabama Credit‍

Eligible companies contributing investment for projects approved by the Alabama Renewal Commission to local economic development organizations may qualify for a corporate income tax credit equal to their contribution capped at 50% of tax liability in that year. The program is capped at$10,000,000 for the fiscal years 2017, 2018, 2019, and 2020. Contributions may not be transferred to any other taxpayer. The Growing Alabama Act Income Tax Credit will sunset in 2020.

Full Employment Act of 2011

‍Businesses with 50 or fewer employees may receive a one-time, non-refundable and non-transferable tax credit equal to $1,000 for every new job created earning over $10 per hour. This credit is not refundable or transferable.