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.
Tax abatement available to qualifying companies for up to 10 years for non-educational real and personal property
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.
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:
Following are incentive tools used most frequently in a partnership between Shelby County and the community:
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.
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.
58 INC | Shelby County EDC
1126 County Services Drive
Pelham, Alabama 35124