Regional Review: Southern States Are Hub for Foreign Automakers & Suppliers

Beth Mattson-Teig (Location USA / April 2013)

Over the past decade, the South has emerged as a manufacturing hub for big automakers. Major international firms such as Mercedes-Benz, Toyota, and Volkswagen are just a few of the players that have a strong and growing presence in the South. As the auto industry continues to recover, that formidable industry cluster is fueling growth across Alabama, Arkansas, Kentucky, Louisiana, Mississippi, and Tennessee. More

The States Leading the U.S. Manufacturing Resurgence

Mark Crawford (Q1 / Winter 2013)

Exhibiting know-how and innovation, U.S. manufacturers are adding to their payrolls and economic growth across the nation. We have identified 19 states where manufacturing is leading the way... More

Railroads: Still an Important Industrial Link

Jim Romeo (Q1 / Winter 2013)

The manufacturing epicenters of the future will need to integrate supply chain, logistics infrastructure, work force, and community continuous improvement; the presence of rail services is an important link in that chain. More

Regional Supply Chains: A Win for OEMs and Their Locations

Clare Goldsberry (Q1 / Winter 2013)

Regional sourcing is helping manufacturers save time and money; with that in mind, savvy suppliers are moving closer to the end users of their products. More

Federal and State Legislative Moves to Boost Competitiveness & Business Climate

Jason Hickey, President, Hickey & Associates, LLC (Q1 / Winter 2013)

Understanding the competitive economic climate across the United States, Congress and state legislatures continue to propose new legislation to compete in today’s economic environment. More

How Some Locations are Making Their Business Case for Incentives

David J. Robinson, The Montrose Group, LLC (Q1 / Winter 2013)

Incentives are only part of an area’s economic development strategy and they are a necessity for companies that are struggling to compete in challenging economic times. See how Columbus, Ohio, Alabama and New York city have all recently successfully used incentives to promote economic growth. More

Alabama: Ranked First for its Competitive Labor Costs and Fourth Overall

Area Development Magazine Special Presentation (Fall 2012)

For the third consecutive year, Alabama was among the top five states for doing business. Alabama was also first for competitive labor costs and near the top of the list for its work force development programs. More

Georgia's Leading Workforce Training Program Lands the State in Third Overall

Area Development Magazine Special Presentation (Fall 2012)

Georgia ranked third among the Top States for Doing Business. Its consistent, high-level performance is the result of a pro-business government and diverse economy, including aerospace, agribusiness, IT, advanced manufacturing, and logistics and distribution. The life sciences industry continues to show strong gains in the state, generating about $23 billion annually toward the GDP and employing more than 100,000 workers. More

ALABAMA at a glance

POPULATION: 4,802,740 (2011 estimate)

LABOR FORCE: 1,975,011 (August 2012)

RIGHT TO WORK: Yes

TRADITIONAL INDUSTRIES:Agriculture, forestry, metalworking, chemicals, machinery

EXPANDING INDUSTRIES: Transportation industries, information and biotechnology, research and development, aerospace, distribution and logistics, services, tourism

COLLEGE GRADUATES: (Age 25 and over) 22%

BASIC BUSINESS TAXES:
Corporate Income Tax: 6.5 percent of net income; deductions allowed for federal income tax paid or accrued for a lower effective rate of 4.5 percent

Secretary of State Qualification: Before transacting business in Alabama, a foreign corporation (corporation incorporated outside of Alabama) must qualify with the Alabama Secretary of State; foreign corporations must file an application for certificate of authority (form CD-2) with the Alabama Secretary of State along with a certified copy of the articles of incorporation and must pay a $175 qualification fee.

Alabama Business Privilege Tax: The tax base is the taxpayer's net worth apportioned to Alabama; the rate ranges from $0.25 to $1.75 for each $1,000 of net worth in Alabama; minimum privilege tax is $100; maximum is $15,000, except for financial institutions, financial institution groups, and insurance companies, which have a maximum privilege tax liability of $3 million; an electing family limited liability entity is capped at $500.

Sales and Use Tax: 4 percent on gross proceeds of sales of tangible personal property and gross receipts of amusement businesses; 1.5 percent on manufacturing machinery and farm equipment; counties may impose additional tax.

Property Tax: State rate of 6.5 mills is based on 20 percent of fair market value of property not otherwise classified (including industrial); 10 percent of agricultural, forest, and residential property; 30 percent of fair market value of utility property; additional taxes levied by local jurisdictions; inventories, goods-in-process, and pollution- control equipment are exempt from property tax.

BUSINESS INCENTIVES:
AIDT

Heroes for Hire credit

Alabama E3 (economy, energy, environment)

Alabama Technology Network (ATN)

Alabama Career Centers

Workforce Investment Areas

Economic Development Revolving Loan Funds

Alabama Improvement Districts

Alabama New Market Tax Credit (NMTC) Program

Alabama Innovation Fund

Industrial Development Grant (Site Preparation) Program

Industrial Access Program