Flag_of_Alabama.svg
An official website of the Alabama State government.

The .gov means it's official

Government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on an official government site.

The site is secure

The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Services

Services

Business and License

Business and License

Collections

Collections

Entity Registration

Entity Registration

Human Resources

Human Resources

Income Tax

Income Tax

Legal

Legal

Motor Vehicle

Motor Vehicle

Property Tax

Property Tax

Sales and Use

Sales and Use

Tax Incentives

Tax Incentives

Tax Policy

Tax Policy

Tax Abatements

  • Tax Abatements

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.

Additional Resources

Website feedback