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

Varies depending on municipality
MunicipalityMunicipality RateCounty RateState RateTotal
Municipality: Alabaster
Municipality Rate: 4%
County Rate: 1%
State Rate: 4%
Total: 9%
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: 5%
County Rate: 1%
State Rate: 4%
Total: 10%
Municipality: Pelham
Municipality Rate: 4%
County Rate: 1%
State Rate: 4%
Total: 9%
Municipality: Vincent
Municipality Rate: 4%
County Rate: 1%
State Rate: 4%
Total: 9%
Municipality: Westover
Municipality Rate: 4%
County Rate: 1%
State Rate: 4%
Total: 9%
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:

Non-education portion of sales tax eligible for abatement to qualifying companies during the construction phase of the project

Property Tax

Property assessed at 20.0%
MunicipalityMunicipality RateSchoolCountyStateTotal
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

Alabama offers a cash rebate of up to 3% annually of the previous year’s gross payroll (not including fringe benefits) for eligible employees who are Alabama residents. The Jobs Credit is available for up to 10 years.

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.

CONTACT US

58 INC | Shelby County EDC
1126 County Services Drive
Pelham, Alabama 35124

Phone: 205.620.6658
Email: info@58inc.org

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