Taxes and Incentives

Summary of Alabama Taxes and Tax Incentives 2015:

http://revenue.alabama.gov/taxincentives/incentivesum.pdf

Alabama’s Major Tax Incentive and Grants Include:

• Capital Investment Tax Credit – Income tax credit for up to five percent annually for twenty years of initial capital costs of qualifying projects to new and expanding companies.

• Property Tax Abatements – Abatements of up to 10 years from property taxes levied for non-educational purposes.

• Sales and Use Taxes – Mortgage and recording taxes can be abated.

• Industrial Development Grant Program – Grants to counties, municipalities and local industrial development boards or authorities or economic development councils or authorities, airport authorities, port authorities or public corporations or certain state agencies or department to pay for site preparation.

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

http://revenue.alabama.gov/taxincentives/

SALES TAX RATES
		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%
	PROPERTY TAX MILLAGE RATES
		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