Incentives
Alabama offers many competitive tax incentives and free workforce training programs to help lower the cost of doing business in the state. For new and expanding industries located in certain parts of Coosa and Tallapoosa Counties, even more tax incentives and business assistance programs are available. For more information about tax rates and available incentives, contact the Lake Martin Area Economic Development Alliance at 256-215-4404.
Enterprise Zone Tax Incentives
Portions of Tallapoosa County are designated as Enterprise Zones. Additional incentives are available to new and expanding industries located in these designated areas. More information about this program can be found on the Alabama Department of Economic and Community Affairs website.
Incentives include:
- Up to $2,500 in tax credit for each new permanent employee (applied against income and/or business privilege tax liability)
- Exemptions for income, sales & use, and business privilege tax liability
Favored Geographic Areas Program
This program allows qualifying new and expanding industries to be eligible for the Capital Investment Tax Credit at lower investment and job creation thresholds. All of Coosa County is designated and the enterprise zones in Tallapoosa County are designated as Favored Geographic Areas.
More information about this program can be found in the Favored Geographic Areas brochure (PDF) from EDPA.
Income Tax Incentives
The Alabama Income Tax law is found in Chapter 18, Title 40, Code of Alabama 1975 . Corporations and other business entities remit Alabama income tax based on the net taxable income derived from business conducted within the state. The amount of net income apportioned to Alabama is determined by applying a four-factor formula of property, payroll, and double-weighted sales to total net income. A brief description of tax incentives available to businesses in Alabama can be found at the Alabama Department of Revenue website.
Sales and Use Tax (General)
To find specific sales and use tax rates, visit the Sales and Use Tax section of the Alabama Department of Revenue website.
Incentives Include:
- Abatements of state and non-educational local construction-related sales and use taxes
- Discount if sales tax is timely paid
- Exemption for raw materials, pollution control equipment, quality control testing, and donations to charitable entities
- Utility gross receipts tax exclusions
- Enterprise Zone credit (Tallapoosa only)
More information about sales and use tax abatements and incentives can be found in the Abatement Booklet provided by the Alabama Department of Revenue.
Property Tax
To find specific sales and use tax rates, view the 2017 Millage Rates (PDF) provided by the Alabama Department of Revenue.
Incentives:
- Abatements for noneducational property taxes
- Exemptions for pollution control equipment and raw material inventory
- No property taxes on inventory (some restrictions apply)
- Alexander City (Tallapoosa County) is classified as a Class 6 municipality. Special property tax incentives are available for businesses located in this city.
