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.
Jobs Act Incentives
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.
Alabama Reinvestment and Abatements Act
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
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
Full Employment Act Credit.
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.
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.
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.
governments and authorities can receive
state grants to help 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.
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
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
For additional information on any program you can contact the City of Madison, Planning & Economic Development Department or the State of Alabama.