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Tax Incentives

Tax incentives are available for new and expanding companies in Barbour County. A summary of those incentives can be found below. Additional information can be found on the Alabama Department of Revenue website.

In addition to state level tax incentives, incentives at the local level may be available. For help determining tax rates and finding available incentives, contact the Eufaula Barbour Chamber of Commerce at (334) 687-6664.

Corporate Income Taxes

  • 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 (see below)
  • 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 Tax

  • 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

Property Tax

Alabama state property tax rate is 6.5mills (.0065%). County and city rates vary and current rate information can be found in the Property Tax Section of the ADOR website.

Property Tax Rates in Barbour County (including all state and local taxes) are:

Eufaula 42.5 mills
Clayton 39.5 mills
Louisville 27.5 mills
Clio 39.5 mills
Baker Hill 34.5 mills
Rest of County 29.5 mills

Possible incentives include:

  • Abatements for non-educational property taxes
  • Pollution control equipment exemptions
  • No property taxes on inventory
  • Raw materials inventory exemptions

Sales and Use Tax

The state sales and use tax rates are 2.5%. County rates vary and current rate information can be found in the City and County Tax Rates Section of the ADOR website.

Sales Tax Rates in Barbour County (including all state and local taxes) are:

Eufaula 9.5%
Clayton 9.5%
Louisville 9.5%
Clio 9.5%
Baker Hill 7.5%
Rest of County 5.5%

Available incentives include:

  • Abatement of State and non-educational local construction-related taxes
  • Raw materials, pollution control equipment, quality control testing, and donations to charitable entities exemptions
  • Utility gross receipts tax exclusions
  • Discount if sales tax is paid promptly

State Unemployment Tax

  • 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