Our business climate is one of the most competitive in the nation and the City of Madison and the State of Alabama offer new businesses economic development incentives as a long-term framework for success. Alabama's tax burden is among the lowest in the nation and Alabama is one of a small number of states that allow full deduction of federal taxes paid from state income tax liability. But there are still opportunities available to business and industry to improve financial burdens and keep more money for business development and expansion.
Visit the Industrial Development Board website for more information.
Jobs Credit. Annual cash refund up to 3% of the previous year's gross payroll for up to 10 years.
Investment Credit. Credit of up to 1.5% of the qualified capital investment costs for up to 10 years. Credit can be taken against the Alabama income tax liability and/or utility tax liability.
New Facility and Expansion. (1) Abatement of non-educational portion of sales and use taxes on construction materials, and (2) Abatement of non-educational portion of property tax for up to 20 years. May also qualify for Jobs Act Incentives.
Existing Facility. Refurbishments, upgrades, or placed back in service. (1) Abatement of non-educational sales and use taxes on construction materials and equipment, (2) Abatement of non-educational property taxes for up to 20 years of the incremental property tax increases, (3) Exemption from taxes for increased utility services for up to 10 years, and (4) AIDT worker training.
Property Tax Abatement. New and expanding businesses can abate all of the state and local non-educational portion of the property taxes on all real and personal property incorporated into a qualifying project, for up to 20 years. Data processing center projects can receive an extended abatement up to 30 years, contingent on total capital investment in a project.
Sales and Use Tax Abatements. Companies can abate all state and the local non-educational portion of the sales and use taxes on the acquisition, construction and equipping of a qualifying project. Data processing center projects can receive an extended abatement associated with constructing and equipping a project, including refresh, for up to 30 years, contingent on total capital investment in a project.
Full Employment Act Credit. Employers with less than 50 employees are eligible for a $1,000 nonrefundable income tax or financial institution excise tax credit for each qualifying job created.
Heroes for Hire Credit. Employers meeting the requirements for the Full Employment Act are eligible for an additional $1,000 nonrefundable income tax or financial institution excise tax credit if the employee is a qualifying veteran.
Net Operating Loss Carryforward. Companies may carry forward any operating losses for up to 15 years.
Income Tax Education Credit. Allows an employer to take a tax credit for 20% of the cost of an employer-sponsored program to improve basic skills though high school level.
Industrial Development Grants. Local governments and authorities can receive state grants to help qualifying businesses with the cost of site preparation. These grants are available to industrial, warehousing and research firms or headquarters facilities for other types of firms. Contact us to see how we may be able to help with improvements through grant approval.
Industrial Revenue Bonds. Tax-exempt bonds up to $10 million can be issued covering all or part of the cost of land and building acquisition, construction, furnishings and some soft costs.
Alabama Infrastructure Grant Program. Helps finance water, sewer and road facilities for qualifying projects.
Alabama Industrial Access Road and Bridge Program. Helps finance the roads and bridges needed to connect public roads to industrial projects.
Certified Capital Company Program. Provides financing for projects considered to be too risky for conventional financing options.