Working In Eufaula

TAX INCENTIVES

  • CORPORATE INCOME

    • Corporate income tax rate is 6.5%
    • Based on the net taxable income of business done in Alabama
    • Businesses are permitted to deduct all of their federal taxes apportioned to Alabama
    Potential incentives include:
    • Net-operating loss carryforward
    • Pollution-control equipment deduction
    • Income tax capital credit
    • Basic skills educational tax credit
  • CAPITAL CREDIT

    • Available to qualifying all new and expanding companies and industries
    • Gives businesses up to 5% credit of capital costs
    • Can be applied to the Alabama income liability generated by the project income
    • Available annually for a maximum of 20 years
    For more information, see the Capital Credit Information section on the ADOR website.
  • FAVORED GEOGRAPHICAL AREA

    The Favored Geographical Area program provides capital credit incentives at lower investment rates ($500,000) and new employee (5) thresholds to companies located in Enterprise Zones and/or Less Developed Counties. For more information, see the Favored Geographic Area PDF from the Economic Development Partnership of Alabama (EDPA).
  • ENTERPRISE ZONE

    Additional incentives may be available to new and expanding companies through the Enterprise Zone program. This incentive includes up to $2,500 tax credit for each new permanent employee, as well as exemptions from income, sales & use, and business privilege tax liability.
  • BUSINESS PRIVILEGE

    • Based on a company's net worth in Alabama and the company's ability to pay
    • Rate ranges from $.25 to $1.75 for each $1,000 of net worth in Alabama
    Available incentives include:
    • Pollution control equipment deduction
    • Air carrier with hub operations deduction
  • STATE UNEMPLOYMENT

    • Employer requirement for the state unemployment tax is based on the first $8,000 of each employee's compensation
    • Rates vary from 0.5% to 5.4%
    • New employer rate is 2.7%
    • Rates are based on employer's experience rating
    • Employees do not contribute

BUSINESS ASSISTANCE

  • INDUSTRIAL REVENUE BONDS

    • Administered by local economic development organizations
    • Available for qualifying new and expanding companies
    • Can be used for land, building, and equipment purchases
    • Have lower interest rates and offer tax benefits
  • REVOLVING LOAN FUNDS

    • State program
    • Administered through local economic development organizations.
    • Provides gap financing for qualifying new and expanding industries that are creating new permanent jobs
    • Can be used for land, building, and equipment purchases, as well as working capital
  • CERTIFIED CAPITAL COMPANY PROGRAM

    • Open to qualifying businesses that are headquartered in Alabama or are moving their headquarters to the state
    • Administered by the Alabama Department of Commerce and provides alternative funding to conventional bank financing
    More information about this program can be found on the Alabama Department of Commcerce website.
  • USDA RURAL DEVELOPMENT

    The USDA provides business assistance programs, including grants and loans for those companies looking to develop in rural areas. More information about these programs, including grant and loan information, can be found on the USDA Rural Development – Alabama website.

SITE & INFRASTRUCTURE ASSISTANCE

Local municipalities are willing and able to apply for site preparation and infrastructure grants to assist new and expanding companies in Alabama.
  • Industrial Development Grant Program (Site Preparation)
    • Used for land and labor surveys, site preparation, and road construction projects
    • Based on amount of capital investment
  • Alabama Infrastructure Grant Program
    • Used to improve infrastructure on a site
  • Alabama Industrial Access Road and Bridge Program
    • Used to create industrial access to a site
    • Includes construction of roads and bridges
  • Grants from Alabama Department of Economic and Affairs
Eufaula Barbour County
Chamber of Commerce
333 East Broad Street  
Eufaula | ALabama | 36027
334.687.6664