Brownfield Development Tax Abatements

Alabama Department of Revenue

Program Type:

Tax Incentive

Eligible Geography:

Alabama

Summary:

The Brownfield Development Tax Abatement Act gives cities and counties the ability to abate taxes in re-development areas. Eligible areas are listed by the Alabama Department on Environmental Management and applicants must purchase a participating site and follow the application process to receive abatements.

For New Companies, there is no threshold or a limitation on the investment amount for new Brownfield abatement project. The total amount of the capital investment by a company that is located in Alabama is eligible for the tax abatements.

For Major Additions, the additional capital investment by a company that is expanding their current facilities on a Brownfield development property must equal the lesser of:

-30% of the original cost of the property as remediated; or
-$2,000,000.

Eligible Recipients:

For-Profit Business

Eligible Recipients Detail:

The private user (for-profit entity) and property must be in the Alabama Department of Environmental Management’s voluntary cleanup program to qualify for the Brownfield abatements.

Eligible Purpose:

Building Connectivity; General Infrastructure; Last Mile Connectivity

Eligible Purpose Detail:

Brownfield abatement and development projects, which can include the extension of broadband services and installation of broadband infrastructure for a building are eligible. Brownfields abatement is performed under the supervision of the Alabama Department on Environmental Management.

Business can abate the following taxes by participating in the program:

-Non-educational county and city sales and use taxes
-Non-educational state, county, and city property taxes – up to 20 years.

Other Eligibility Criteria:

Development/redevelopment zone Statutory Requirements for Brownfield Abatements: The property must be in the Alabama Department of Environmental Management's voluntary cleanup program to qualify for Brownfield abatements. New Company: There is no threshold or limiting investment amount for new Brownfield abatement project. The total amount of the capital investment by a company that is locating in Alabama is eligible for the tax abatements. Major Addition: The additional capital investment by a company that is expanding their current facilities on Brownfield development property must equal the lesser of: 30 percent of the original cost of the property as remediated or $2,000,000.

Funding Match/Terms: