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
