POPULATION: 4,557,808 (2005 population estimate)

LABOR FORCE: 2,767,600 (July 2006, seasonally adjusted)

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) 29.5%

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

Alabama Business Privilege Tax: 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 per year, except for financial institutions, insurance companies, and public utilities, which have a maximum privilege tax liability of $3 million; and real estate investment trusts, which have a $500,000 cap. An electing family limited liability entity is capped at $500.

Entrance Fee (Secretary of State Qualification): Before transacting business in Alabama, a foreign corporation (corporation incorporated outside of Alabama) must file an application for certificate of authority with the Alabama Secretary of State along with a certified copy of the articles of incorporation and must pay a $175 qualification fee. In order to form a domestic corporation, the corporate name must first be reserved with the Alabama Secretary of State and articles of incorporation filed with the probate judge of the county in which the corporation has its initial registered office. The fees for filing articles of incorporation are $40 for the Alabama Secretary of State and $35 for the probate judge.

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
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 Bonds
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
Industrial Development Training Program
Gulf Opportunity Zone