Alabama has one of the most favorable business climates in the U.S. with a low overall tax structure and 21st century economic incentives for new & expanding firms. The statutory basis for these incentives gives industry a stable framework for long term investment.
Tax incentives are available for new and expanding companies in Greene County, Alabama. A summary of those incentives can be found below.
Corporate Income Tax
The corporate income tax rate is 6.5 percent. With an estimated net effective rate of 4.52 percent, Alabama maintains one of the lowest corporate income tax rates in the nation. The state is one of only two that allow a full deduction of federal taxes paid from Alabama income.
Business Privilege Tax Cap
The maximum business privilege tax for most business entities is $15,000. The exceptions are for financial institutions, financial institution groups, and insurance companies that have a maximum business privilege tax of $3 million.
No Inventory Tax
Alabama does not levy property tax on inventory. Raw materials and goods-in-process are also exempted.
Grants and Bonds for Infrastructure
Grants may be available for site preparation, water and sewer improvements, and industrial roads and bridge access for qualifying projects. Industrial Revenue Bonds financing can be available for part or all of the cost of land acquisition, site preparation, construction, equipment and other basic costs for qualifying new or expanding projects.
For additional information about tax incentives in Alabama, please call the Greene County Industrial Development Authority at 205-372-9769, or visit the following sites for more materials:
Made in Alabama, Alabama Department of Commerce: Made in Alabama Taxes & Incentives
- Provides information on Alabama tax incentives, non-tax incentives, and various financing programs.
Alabama Department of Revenue: Alabama Department of Revenue’s Tax Incentive
