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
Infrastructure Grant Program
Public Works and Facilities
Grant
Regional Revolving Loan Funds
Appalachian Regional
Commission Grants
Delta Regional Commission
Grants
Industrial Development
Revenue Bonds
Enhanced Capital Tax Credit
Sales/use tax abatements
Property tax abatements
Small Business Administration
504 loans
Small Business Administration
7-A Program
REA Rural Economic
Development Loan and
Grant Program
"Made in Alabama" Job
Incentives Act
Full Employment Act of 2011
Alabama SAVES (Sustainable
and Verifiable Energy Savings)
Loan Program