Alabama offers different types of statutory tax abatements to qualifying industries.
Incentives offered to qualifying projects
- Abatement of non-educational portion of sales and use taxes on construction materials, equipment,
and other capitalized costs.
- State taxes – 4% of the general rate and 1.5% manufacturing rate.
- Local taxes – Taxes not earmarked for education purposes (rates vary by locality).
- Property tax abatement on the real and personal property incorporated into a qualifying project
for up to a maximum of 20 years (data processing centers can be abated up to 30 years).
- Mortgage and recording taxes with respect to mortgages, deeds, and documents relating to issuing or
securing obligations and that convey title into or out of a public authority, city, or county government
with respect to private use industrial property may also be abated.
To receive an abatement for any or all of these taxes, a project must meet certain qualifications and
follow certain procedures, as determined by the law and regulation. Abatements are granted by the local
granting authority, and provisions vary by each jurisdiction. To learn about a specific type of abatement,
please click on the Chapter 9B, 9G, or 9C abatements below.
- Chapter 9B Abatements – For New and Expanding Projects, Including Upgrades
- Chapter 9G Abatements – For Renovation, Modification and (True) Replacement of Equipment Projects
- Chapter 9C Abatements – For Brownfield Development Projects
- Contractor Information – For general contractors and sub-contractors who are working on an abated project for companies
- Abatement Forms and Templates
- Abatement Checklist