New Facilities and Expansions

Benefits:

• Sales & Use Tax Abatement of non-educational portion of sales and use taxes on construction materials, equipment and other capitalized costs.
• Property Tax Abatement for 10 years of the non-educational portion of property tax.

Requirements

• Projects must have a qualifying business activity (Section 40-9B-3(a)(10) of the Code of Alabama, 1975).
• No job creation requirement (exceptions: data centers must create 20 net new jobs; headquarters must create 50 net new jobs).
• Abatements must be approved by the City Council.

Existing Facility: Refurbishments, Upgrades, or Placed Back in Service

Benefits

• Sales & Use Tax Abatement of non-educational portion of sales and use taxes on construction materials, equipment and other capitalized costs.
• Property Tax Abatement for 10 years of the non-educational portion of the incremental property tax increases.
• Utility Tax Abatement for increased utility services for up to 10 years.

Requirements

• Projects must have a qualifying business activity (Section 40-9B-3(a)(10) of the Code of Alabama, 1975).
• No job creation requirement (exceptions: data centers must create 20 net new jobs; headquarters must create 50 net new jobs).
• For property tax abatements for all years, they City Council abates City non-educational property taxes, the applicable County abates County non-educational property taxes, and the Governor abates State non-educational property taxes.
• Associated capital investment must be 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.
• A project receiving benefits under this incentive cannot also receive benefits under the Alabama Jobs Act.