Investment Credit

Alabama Department of Revenue

Program Type:

Tax Incentive

Eligible Geography:

Alabama

Summary:

The investment credit provides for a discretionary credit depending upon the qualifications of the approved company's capital investment. Its purpose is to encourage capital investments by businesses in Alabama. This is a tax credit of up to 1.5% annually of qualified capital investment for a qualified project, for a period of up to 10 years. For qualifying investments in a targeted or a jumpstart county, the incentive period is available for up to 15 years.

Eligible Recipients:

For-Profit Business

Eligible Recipients Detail:

Only taxpayers that have been approved by the Alabama Department of Commerce for qualifying projects are eligible to claim the credit as allowed by the executed State Project Agreement.

Eligible Purpose:

Last Mile Connectivity

Eligible Purpose Detail:

Projects must have a qualifying business activity according to the Code of Alabama and must create jobs and investment according to the following schedules:

-Projects in Non-Targeted / Non-Jumpstart Counties must create 50 net new full-time jobs and do not require capital investment.
-Projects in Targeted* or Jumpstart** Counties must create 10 net new full-time jobs and require $2,000,000 in direct or indirect investment.
-Technology Company projects must create 5 net new full-time jobs
-Chemical Manufacturing, Data Center, Engineering, Design, or Research,Metal/Machining Technology or Toolmaking must create Net new full-time job(s)

Other Eligibility Criteria:

See the site for more details on eligible businesses and investments.

Funding Match/Terms:

See Eligible Purpose for investment and job creation requirements.