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).
