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Inward Investment Guides

First Person: A Tire Giant Helps Grow Small Business

John D. Tully, President & COO, Michelin Development Company (Q3 2014)
Forming positive relationships with the communities in which they are located is important for companies, large and small. These relationships foster further economic growth within the host communities. With that in mind, Area Development’s editor recently interviewed John Tully, the director of Michelin Development, formed specifically to offer support to new small and medium-size businesses. More

Alabama Direct Financial Incentives 2014

Area Development Online Research Desk (Q1 2014)
Alabama's economic development, finance and tax organizations provide a range of incentive programs to initiate new business and commercial investment. More

The Southland Delivers a Solid Economic Performance

Mark Crawford (Q1 2014)
The southern states have embraced the transition from traditional to knowledge-based economies and work hard to attract new projects and the high-paying jobs that come with them. More

Manufacturing in America: Bigger, Better and Bolder

Mark Crawford (Q1 2014)
American manufacturing is on the upswing, with advances in innovation and productivity buoyed by decreased energy and transportation costs, and new efforts to increase work force skills. More

Opelika, Alabama Builds High-Speed On Ramp to the Future

Richard K. Wallace, Editor and Publishing Director, The Next Silicon Valley (Q1 2014)
Opelika is developing a comprehensive broadband fiberoptic system, connecting the city and a growing industrial base to the booming global business opportunities of the future. More

Primer: The Impact of Taxes & Incentives on Data Center Locations

Chris Schastok, Vice President, Economic Incentives Group (EIG), CBRE, Inc. (Q1 2014)
Many states and communities are using incentives to lure data centers and establish clusters of these facilities, which, in turn, stand to benefit from tax breaks and cash grants for necessary infrastructure improvements. More

Regional Report: Beyond Automotive, the South Revs Up Growth Across Diverse Industries

Beth Mattson-Teig (Directory 2014)
A highly skilled work force and good transportation infrastructure are also drawing aerospace and other high-tech companies. More

The 2013 Gold & Silver Shovel Award Recipients in Pictures

Area Development Magazine Special Presentation (Directory 2014)
Shown here are nine of the recipients of Area Development’s 2013 Gold & Silver awards, which were bestowed in recognition of the states’ efforts to capture new facility and expansion projects that resulted in significant investment and job-creation. All told, 19 states were recognized for their efforts. More
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Studies/Research
News Items
Around The Web
Studies/Research

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

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

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%