INCENTIVES & TAXES
Incentives and Taxes That Offset Costs and Maximize Investment
Shelby County and its municipalities have created a favorable tax environment for business investment while still maintaining necessary revenue for high-quality government services. While the benefits for investment are numerous, incentives have been created to offset the cost for new and expanding projects. Contact us about how we can help you maximize tax and non-tax incentives, including tax abatements and credits and workforce training services.
Local Tax Rates
Sales Tax
| Municipality | Municipality Rate | County Rate | State Rate | Total |
|---|---|---|---|---|
|
Municipality:
Alabaster
|
Municipality Rate:
5% |
County Rate:
1%
|
State Rate:
4%
|
Total:
11% |
|
Municipality:
Birmingham
|
Municipality Rate:
4%
|
County Rate:
1%
|
State Rate:
4%
|
Total:
9%
|
|
Municipality:
Calera
|
Municipality Rate:
4%
|
County Rate:
1%
|
State Rate:
4%
|
Total:
9%
|
|
Municipality:
Chelsea
|
Municipality Rate:
5%
|
County Rate:
1%
|
State Rate:
4%
|
Total:
10%
|
|
Municipality:
Columbiana
|
Municipality Rate:
4%
|
County Rate:
1%
|
State Rate:
4%
|
Total:
9%
|
|
Municipality:
Harpersville
|
Municipality Rate:
4%
|
County Rate:
1%
|
State Rate:
4%
|
Total:
9%
|
|
Municipality:
Helena
|
Municipality Rate:
4%
|
County Rate:
1%
|
State Rate:
4%
|
Total:
9%
|
|
Municipality:
Hoover
|
Municipality Rate:
4%
|
County Rate:
1%
|
State Rate:
4%
|
Total:
9%
|
|
Municipality:
Montevallo
|
Municipality Rate:
4.9% |
County Rate:
1%
|
State Rate:
4%
|
Total:
9.9% |
|
Municipality:
Pelham
|
Municipality Rate:
5% |
County Rate:
1%
|
State Rate:
4%
|
Total:
10% |
|
Municipality:
Vincent
|
Municipality Rate:
4%
|
County Rate:
1%
|
State Rate:
4%
|
Total:
9%
|
|
Municipality:
Westover
|
Municipality Rate:
5% |
County Rate:
1%
|
State Rate:
4%
|
Total:
10% |
|
Municipality:
Wilsonville
|
Municipality Rate:
3%
|
County Rate:
1%
|
State Rate:
4%
|
Total:
8%
|
|
Municipality:
Wilton
|
Municipality Rate:
3%
|
County Rate:
1%
|
State Rate:
4%
|
Total:
8%
|
Incentive:
Property Tax
| Municipality | Municipality Rate | School | County | State | Total |
|---|---|---|---|---|---|
|
Municipality:
Alabaster
|
Municipality Rate:
10 mills
|
School:
30 mills
|
County:
7.5 mills
|
State:
6.5 mills
|
Total:
54 mills
|
|
Municipality:
Birmingham
|
Municipality Rate:
36.2 mills (Education 9.8 mills)
|
School:
16 mills
|
County:
7.5 mills
|
State:
6.5 mills
|
Total:
66.2 mills
|
|
Municipality:
Calera
|
Municipality Rate:
10 mills
|
School:
30 mills
|
County:
7.5 mills
|
State:
6.5 mills
|
Total:
54 mills
|
|
Municipality:
Columbiana
|
Municipality Rate:
10 mills
|
School:
30 mills
|
County:
7.5 mills
|
State:
6.5 mills
|
Total:
54 mills
|
|
Municipality:
Harpersville
|
Municipality Rate:
5 mills
|
School:
30 mills
|
County:
7.5 mills
|
State:
6.5 mills
|
Total:
49 mills
|
|
Municipality:
Helena
|
Municipality Rate:
5 mills
|
School:
30 mills
|
County:
7.5 mills
|
State:
6.5 mills
|
Total:
49 mills
|
|
Municipality:
Hoover
|
Municipality Rate:
30.5 mills (Education 24 mills)
|
School:
22 mills
|
County:
7.5 mills
|
State:
6.5 mills
|
Total:
66.5 mills
|
|
Municipality:
Montevallo
|
Municipality Rate:
7 mills
|
School:
30 mills
|
County:
7.5 mills
|
State:
6.5 mills
|
Total:
51 mills
|
|
Municipality:
Pelham
|
Municipality Rate:
14 mills
|
School:
30 mills
|
County:
7.5 mills
|
State:
6.5 mills
|
Total:
51 mills
|
|
Municipality:
Vestavia
|
Municipality Rate:
49.3 mills (Education 28.8 mills)
|
School:
16 mills
|
County:
7.5 mills
|
State:
6.5 mills
|
Total:
79.3 mills
|
|
Municipality:
Vincent
|
Municipality Rate:
5 mills
|
School:
30 mills
|
County:
7.5 mills
|
State:
6.5 mills
|
Total:
49 mills
|
|
Municipality:
Wilsonville
|
Municipality Rate:
5 mills
|
School:
30 mills
|
County:
7.5 mills
|
State:
6.5 mills
|
Total:
49 mills
|
|
Municipality:
Wilton
|
Municipality Rate:
5 mills
|
School:
30 mills
|
County:
7.5 mills
|
State:
6.5 mills
|
Total:
49 mills
|
Incentives include:
Tax abatement available to qualifying companies for up to 10 years for non-educational real and personal property
State & Local Incentives
Alabama State Incentives
Alabama offers a variety of incentive programs, most notably the Jobs Credits and Investment Credits programs, the former as a cash rebate off-setting payroll and the latter as a credit against taxes.
Jobs
Capital Investment
Alabama offers a tax credit of up to 1.5% annually of the qualified capital investment in a qualifying project for up to 10 years. The Investment Credit may be taken against Alabama income tax, financial institution excise tax, insurance premium tax, utility tax and/or utility license tax liability and can be carried forward for five years.
At such point in the site selection process that a final incentive package is required, Alabama will present a full incentive package with specific percentage and duration of the credit. Additionally, Alabama has programs for additional credit or tax deductions for:
- Veteran hiring credit
- Net operating losses (15 years carry forward)
- 20% of the actual cost of an employer-sponsored educational program enhancing basic skills of employees up to and including the 12th-grade functional level, including programs that teach English as a second language
- Career-technical dual enrollment for qualifying educational expenses directly associated with the Career-Technical Dual Enrollment Program
- Port credit is a discretionary tax credit for businesses that utilize Alabama’s port facilities
- Apprenticeship program provides income tax credit to employers that hire qualified apprentices who receive classroom or industry-specific instruction and on-the-job training
- Tax abatements on sales and use taxes, for building materials, construction and property, as well as on property taxes (real and personal). These statutory abatements are approved at the local level (see below).
Shelby County + Communities Incentives
Following are incentive tools used most frequently in a partnership between Shelby County and the community:
Statutory tax abatements
As noted above, these are approved at the local level. Based on a review of the project impact, local officials (Industrial Development Board or City) approve abatements on sales taxes for project purchases and up to 10 years for property taxes on real estate and machinery and equipment.
Wage Credit
For qualifying company relocations and expansions, Shelby County and its communities offer a project-tailored, performance-based, cash rebate based on net new jobs equal to approximately 1% of payroll.