Alabama Jobs Act is an incentive to stimulate economic growth through new job creation and capital investment.
Jobs Credit Benefits
The job creation incentive is an annual cash rebate up to 3% of the previous year’s gross payroll (not including fringe benefits) for eligible employees for up to 10 years.
For companies employing at least 12% veterans in their eligible workforce, up to an additional 0.5% job credit is available for the wages of veterans.
Investment Credit Benefits
The investment incentive is a credit of up to 1.5% of the qualified capital investment expenses for a qualifying project for up to 10 years. This credit can be taken against the Alabama income tax liability and/or utility tax liability.
Investment Credit may be carried forward for 5 years.
At the discretion of the Alabama Department of Commerce, the Investment Credit may be transferable for the first 3 years to generate cash for the project. Investment Credit transfers must be at least 85% of face value and must be approved by the Alabama Department of Commerce.
Requirements: Job Credit and Investment Credit
Projects must have a qualifying business activity (Section 40-18-372 of the Code of Alabama, 1975).
Projects must create at least 50 net new jobs (exceptions noted below).
Projects in the following industries are required to create net new jobs, but are not subject to the minimum job creation requirements of the Jobs Act: chemical manufacturing, data centers, engineering, design, or research, and metal/machining technology or tool making.