• 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.

• 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.

The Favored Geographical Area Program provides Capital Credit Incentives at lower investment rates ($500,000) and New Employee Thresholds to companies located in Enterprise Zones and/or less developed counties. For more information, visit the Economic Development Partnership of Alabama (EDPA).

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.

• 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.

• 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 the employer’s experience rating.
• Employees do not contribute.

• 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.

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.

• 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.

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 at USDA Rural Development – Alabama.