Taxes and Incentives

Summary of Alabama Taxes and Tax Incentives 2015:

Alabama’s Major Tax Incentive and Grants Include:

Business Privilege Tax

The tax applies to all corporations, limited liability entities, including disregarded entities, which do business in Alabama or are organized under the laws of Alabama.  The tax accrues as of January 1 of every taxable year and is due March 15.  However, in the case of a taxpayer organized during the year, qualifying during the year, or doing business in Alabama for the first time, the tax accrues as of the date or organization, qualification, or beginning to do business and is due 45 days thereafter.

Tax Abatements – Quick Link

40-9B-1 through 40-9B-13

General Educ Part Mfg. Mach. Educ Part
    State Alabama 4.000% 0.000% 1.500% 0.000%
    County Jefferson County 2.000% 1.000% 0.750% 0.375%
    City City of Bessemer 4.000% 0.400% 2.000% 0.000%
TOTAL all jurisdictions 10.000% 1.400% 4.250% 0.375%
Total Educ Part
    State Alabama 0.0065 0.0030
    County Jefferson County 0.0271 local total 0.0136 local total
    City City of Bessemer 0.0351 0.0622 0.0144 0.0280
TOTAL all jurisdictions 0.0687 0.0310