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Inward Investment Guides

Location Notebook: TVA Hitching Its Wagon to the Auto Industry

Cynthia Kincaid , Kincaid Strategic Partners (Q3 2015)
TVA is driving to make automotive manufacturing the cornerstone of the region. More

Choosing the Optimal Site for an Aviation-Related Project

Von Hatley, Managing Director, Jones Walker Consulting, LLC (Q3 2015 Auto/Aero Site Guide)
If current trends continue, a conservative estimate reveals there will be more than 1,000 announcements of aviation-related projects in the United States over the next decade. The best location decisions will be made by project teams that not only look at the current overall costs, but also have a deep understanding of hidden site development costs, in addition to the long-term political/financial stability that a region can provide. More

2015 Gold & Silver Shovel Awards Recognizing Excellence in State Job Creation and Economic Development Efforts

Area Development Special Presentation (Q2 2015)
Area Development’s annual awards recognize individual states for their overall economic development effectiveness. This year, we honor 21 states for their achievements in 2014 in garnering investment and job creation with Texas, Georgia, Tennessee, South Carolina and Nevada awarded the Gold Shovel. More

Auto/Aero Firms Redrawing the Map

Dale D. Buss, Staff Editor,  (Q2 2015)
Strong sales in the auto industry and a rebounding aerospace sector are spurring new facility/expansion projects in legacy as well as new locations. More

Welcoming Others Remains an American Tradition

Nancy McLernon, President & CEO, Organization for International Investment (OFII) (Location USA 2015)
Global investors looking to expand in the U.S. will find an unrivaled consumer market; excellent education system; skilled, productive workforce; and transparent regulatory environment among other advantages. More

Shale Oil & Gas Development Changing the Way the Nation Does Business

Charlotte Batson, Owner and Principal, Batson & Company (Q1 2015)
The development of oil and gas resources is driving infrastructure and manufacturing location decisions, while boosting U.S. competitiveness. More

The United States: A Growing Competitor for New Manufacturing Plants

Alexandra Segers, International Senior Account Executive/Program Manager, SSOE Group (Q1 2015)
As companies continue to review their global site selection options, they are realizing the strong, measurable advantages a U.S. location offers. These advantages can easily be overlooked if the location decision is based on limited information or preconceived notions. More

Regional Report: Auto, Aviation, Energy Drive Growth in the South

Steve Stackhouse-Kaelble (Directory 2015)
The Southern States are driving into the future on the strength of the motor vehicle industry. These states tend to be heavy on manufacturing; their manufacturing sectors tend to have strong automotive activity, and it’s a good time to be in that business. That’s among the reasons all six of the states in this region took home Area Development’s Silver Shovel honors earlier this year. More

ALABAMA at a glance

POPULATION: 4,833,722 (2013 estimate)

LABOR FORCE: 2,119,100 (September 2014)

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) 22.3%

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; cities and 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 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

Alabama Capital Tax Credit

Sales/use tax abatements

Alabama Enterprise Zone Incentives

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

Principal Manufacturing industries

  • Transportation Equipment
    20.4%
  • Food
    13.3%
  • Fabricated Metal Products
    9.9%
  • Primary Metals
    7.7%
  • Textile Mills & Products & Apparel
    6.2%
  • Plastics & Rubber Products
    5.8%
  • Wood Products
    5.4%
  • Paper
    5.1%
  • Machinery
    4.5%
  • Chemicals
    4.1%
  • Computer &Electronic Products
    4.1%
  • Furniture and Related Products
    3.4%
  • Other Manufacturing Industries
    10.1%