Helping you get ahead.
The advantage of Alabama.
We welcome companies from all around the globe with customized business incentive packages. You might even call our approach “professional hospitality.” With our strong workforce, prime real estate and welcoming attitude, Alabama offers the ideal environment to thrive.
Alabama Jobs Act
Jobs and Investment Credits
Sections 40-18-370 through 40-18-383 of the Code of Alabama 1975 established incentives programs designed to promote job creation and capital investment. These incentives include the Jobs Credit and the Investment Credit, both available to qualifying projects.
Incentives under the Alabama Jobs Act are dependent upon on multiple factors related to the proposed project. A thorough due diligence review and ROI analysis are conducted using information provided through formal applications given by both the company and the finalist community. A commitment of local incentives is required.
The Governor and the Finance Director grant final approval of incentives, following a formal recommendation from the Secretary of Commerce.
Eligibility: Project must have a qualifying business activity listed in Code of Alabama Section 40-18-372(1).
Job Creation Threshold
| Type of County/Project | Job Threshold Requirement |
| Non-Targeted / Non-Jumpstart County | 50 net new full-time jobs |
| Targeted1 or Jumpstart2 County | 10 net new full-time jobs |
| Technology Company3 | 10 net new full-time jobs |
| Chemical Manufacturing, Data Center, Renewable Energy Generation, Engineering, Design, or Research, Metal/Machining Technology or Toolmaking | Net new full-time job(s) |
Capital Investment Threshold
| Type of County | Capital Investment Threshold Requirement |
| Non-Targeted / Non-Jumpstart County | None |
| Targeted or Jumpstart County | $2,000,000, direct or indirect |
Jobs Credit
The Jobs Credit is a cash rebate of up to 3% annually of the previous year’s gross payroll (not including fringe benefits) for eligible employees who are Alabama residents. The Jobs Credit is available for up to 10 years.
Enhanced benefits include:
- Up to 4% rebate for qualifying projects locating in a Targeted1 or Jumpstart2 County.
- Up to 4% rebate for qualifying projects by a Technology Company3.
- Up to 4% for qualifying projects of companies engaged in pharmaceutical, biomedical, medical technology or medical supplies or related research and development activities.
In addition to the maximum percentages provided above, an additional 0.5% rebate is available on the wages of the following:
- Eligible employees who are veterans, for a company whose eligible workforce is at least 12% veterans.
- All eligible employees, for qualifying projects locating within a former active-duty military installation closed by the Base Realignment and Closure process (BRAC).
Investment Credit
The Investment Credit is an Alabama tax credit of up to 1.5% annually of the qualified capital investment in a qualifying project for up to 10 years; or up to 15 years for Qualifying projects locating in a Targeted or Jumpstart County
- The Investment Credit may be taken against Alabama income tax, financial institution excise tax, insurance premium tax, utility tax and/or utility license tax liability.
- The credit can be carried forward for five years.
- At the discretion of the Governor, the first 5 years of the Investment Credit may be transferred to another taxpayer for at least 85% of its face value.
Tax Abatements
Under Section 40-9B-1 through Section 40-9B-13, Code of Alabama 1975, Alabama cities, counties and public industrial authorities can grant the following tax abatements for qualifying new or expanding projects:
- Sales & use taxes (portions of non-educational state and local)
- Property taxes (portions of non-educational state and local) for up to 20 years (up to 30 years for data centers)
- Mortgage and recording taxes tied to property transfers
| Type of Project | Capital Investment Requirement |
| New company locating in Alabama | None |
| Existing company expanding or upgrading | 30% of the original cost of the currently existing industrial property (sum total of the original facilities and equipment and any expansions and additions prior to the current addition); Or $2 million. |
Governing Body for Abatement of Taxes
Years 1 – 10 (Initial Abatement Period): Counties, cities, and public industrial authorities may grant abatements for certain state, county, and city taxes.
Years 11 – 20 (Extended Property Tax Only): Each taxing authority must independently approve its portion of the abatement.
Abatements for Data Centers
Under Chapter B, data processing centers with a total peak demand of less than 100 megawatts are eligible to receive abatements as follows:
| Project Capital Investment | Investment Timing Requirement1 | State and Local Property Tax Abatement2 | State and Local Sales & Use Tax Abatement |
| Up to $200M | Within 10 years | 10 years | 10 years |
| $200M – $400M | Within 10 years | 20 years | 20 years |
1 From commencement of project
2 From and after the date the private use property becomes owned for federal tax purposes
Projects may qualify for up to 10 additional years of abatements, for a maximum total of 30 years, if they:
- Meet capital investment thresholds
- Enter into binding written agreement with the Alabama Departments of Revenue and Commerce, and the affected local governing body
Under Chapter B, for data processing centers with a total peak demand of 100 megawatts or greater:
- Abatement of state ad valorem tax is not allowed.
- Abatement of state sales tax is not allowed after project is placed in service.
- The Governor may abate state sales tax for the maximum exemption period for data centers that locate in a Targeted County.
Industrial Access Program
Industrial access funds are intended to provide adequate public access for eligible projects as defined in Section 23-6-1(5) of the Code of Alabama. These funds are not intended for use in providing access to retail operations. The industry must be committed to new investment and the creation of new jobs.
The new access must be on public right-of-way (state, city or county), must allow normal public use and must comply with standards for design and construction accompanying the use of state funds. The project sponsor (city or county) will assume maintenance responsibilities for the completed facility consistent with the use of state funds, unless the improvements occur on facilities currently maintained by the state.
Industrial Development
(Site Prep) Grants
Counties, municipalities, local industrial development boards or authorities, economic development councils or authorities, airport authorities, port authorities or public corporations, or certain state agencies or departments (Grantees) may apply to the State Industrial Development Authority (SIDA) for industrial development grants.
Grant funds provided to a Grantee for use in the preparation of a Project Site may be used for:
- Other work relative to site preparation deemed necessary or appropriate
- Preparation of a means of access to the site
- Provision for adequate drainage of the site to prevent the accumulation of excess natural waters thereon Boundary and topographical surveying, clearing and grubbing, and excavating
- The reasonable rehabilitation of buildings and other structures
The amount of funds provided through the grant will be a percentage of the Capital Costs involved in the Qualifying Project:
| Capital Costs | % of Capital Cost or Limit (Grant Amount) |
| Less than $200,000 | 5.0% |
| $200, 000 – $499,999 | 3.5% (minimum $10,000) |
| $500,000 – $999,999 | 2.5% (minimum $20,000) |
| $1,000,000 – $1,999,999 | 1.5% (minimum $28,000) |
| $2,000,000 – $9,999,999 | 1% (minimum $32,000) |
| $10,000,000+ | .75% (minimum $100,000; maximum $150,000) |
Growing Alabama Credit
The Growing Alabama Act, found in Article 19a, Chapter 18, Title 40, Code of Alabama (1975), gives a funding mechanism to Economic Development Organizations (EDOs) to undertake certain projects for the purpose of stimulating economic growth.
Alabama taxpayers can make cash contributions to EDOs for approved qualifying projects and receive a Growing Alabama tax credit equal to their cash contribution. The credit can offset up to 50% of the tax liability for the following tax types:
- State utility license tax
- Income tax
- State portion of the financial institution excise tax
- Insurance premium tax
The credit may be passed through to individual owners, shareholders, partners or members of an LLC and may be carried forward for up to five years.
Qualifying Projects/Uses of the Funds:
- Site work and public infrastructure at an industrial site, industrial park, research park or in a low-income community
- Capital improvements and economic development activities at an intermodal facility or inland port
- Construction and maintenance at an agricultural center
Applications must be submitted to the Alabama Department of Commerce and approved by the Renewal of Alabama Commission. The Growing Alabama Credit for calendar year 2026 is capped at $29 million.
Port Credit
Sections 40-18-400 through 40-18-403 of the Code of Alabama 1975 provide for an incentive to stimulate economic growth through new job creation, capital investment and increased cargo shipping.
The Port Credit is a one-time Alabama state income tax credit of up to:
| Increase in Cargo Volume over Base Cargo Volume | TEU (twenty-foot equivalent unit) | Net Ton | Kilogram for Air Freight | VEU (vehicle equivalent unit) |
| Under 4.99% | $50 | $3.00 | $0.04 | $2.91 |
| 5% – 14.99% | $75 | $4.50 | $0.06 | $4.37 |
| 15% – 24.99% | $100 | $6.00 | $0.08 | $5.82 |
| 25% + | $125 | $7.50 | $0.10 | $7.28 |
The Port Credit is calculated on new cargo above 105% of the prior year’s cargo. The credit can be carried forward for five years. Applications must be submitted to the Alabama Department of Commerce and approved by the Renewal of Alabama Commission.
New warehouse or distribution facilities with associated investment of at least $20,000,000 and creation of at least 75 net new jobs are eligible to receive up to $100 per TEU over a 3-year period. A shipper meeting these requirements must enter into a project agreement with the state.
Eligible shippers must be engaged in manufacturing, warehousing or distribution and must use a publicly owned port in the state. The Renewal of Alabama Commission must approve credit allocation.
Applications are accepted on a rolling-basis.
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Why Alabama?
You can make it here in Alabama.
Alabama is a state of makers, builders and doers. So, whatever you make or build, you can do it in Alabama. We’re a launching point for aerospace, aviation and defense. A leader in automotive production. A home for startups, technology and research breakthroughs. And drawing on our manufacturing roots, we’re helping to usher in the industrial evolution in America.
Quality of Life
There’s more to life in Alabama than just work. Here, you’ll find a low cost of living with a high-value life. Living in Alabama means stepping into a world of new, daily adventures. From beaches and national forests to world-class universities and legendary sports, living here is as sweet as it gets.
Business Climate
Alabama is built for business. Centrally located in the fast-growing American South, our state combines a competitive environment with a pro-business mindset. Whether you’re investing, launching, relocating or expanding, you will find the momentum you need to thrive.
Tax Incentives & Grants
Alabama’s business approach offers global companies incentives, tax benefits, a skilled workforce, ideal site locations and excellent real estate options. Our state’s low taxes, affordable utilities and reasonable cost of living help you boost profits and ensure your dollars go further.
Workforce
Alabama’s workforce is a major attraction for businesses worldwide. AIDT, our state’s nation-leading workforce development agency, has powered giants like Mercedes-Benz and Airbus. By pairing workforce training with strong university pipelines, we deliver a skilled workforce ready for every industry.
Site Search
Your next big move starts on Southern ground. With Alabama’s diverse inventory of prepared sites and available quality buildings, our state is ready to welcome your next project. Whatever you require, we have the space and infrastructure to get you operational—fast.
Contact a Project Manager
Our Business Development Division seeks corporate investors, promotes global expansion for local companies and collaborates with stakeholders to accelerate statewide growth. Connect with a project manager today to see how your new or expanding company could thrive in Alabama.