Alabama Capital Tax Credit

SUMMARY

The program allows qualifying companies to claim tax credit against Alabama income tax liability generated by or arising out of a qualifying Alabama project, not to exceed 5% of initial capital cost annually and also not to exceed twenty years from the date the qualifying project is placed in service.

KEY ISSUES

There is no carryforward, carryback, or retroactivity of tax credits. Credit automatically ends in nineteen years or when the credit used equals 100% of capital investment. An official Statement of Intent must be filed with ADR by the company/entity/business before the project is placed in service and, subject to further determination by ADR before ADR approval. Additional information, ADR rules, and forms are available upon request.

ELIGIBLE BUSINESSES

SIC Groups 20-39; 50; 51; 737; 8731; 8733; and 8734; agricultural and food product processors; process or treatment facilities which recycle, reclaim, or convert materials to a reusable product; and corporate headquarters facilities.

TYPE OF INVESTING COMPANIES

Corporations, partnerships, limited liability companies, proprietorships, trusts or other business entities making qualified business investments in Alabama.

SMALL BUSINESS ADDITION CRITERIA

Must have one hundred or fewer full-time employees in Alabama prior to the date addition is placed in service. Minimum of one million dollars capital investment and fifteen new full-time jobs to occur at project not later than one year after the project is placed in service. Average hourly wage: $8.00 (new hourly/salaried employees only and all employees hereafter hired) or average total compensation: $10.00/hour (new/salaried employees only and all employees hereafter hired).

LARGE BUSINESS PROJECT CRITERIA

Minimum of two million dollars capital investment and twenty new full-time jobs at project, to occur not later than one year after the project is placed in service. Average hourly wage: $8.00 (new hourly/salaries employees only and all employees thereafter hired) or average total compensation: $10.00/hour (new hourly/salaried employees and all employees thereafter hired).