Alabama Jobs Act

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.
  • The Jobs Credit includes wages from Alabama residents only.