Alabama expands financial, tax incentives to new sectors

By Gilbert Nicholson, Staff Writer

The state of Alabama, noted for aggressive incentives to lure manufacturers, has expanded its package of tax breaks and financial assistance to corporate headquarters, research and development entities, and alternative energy businesses.

The law, passed by the Alabama Legislature and signed by Gov. Bob Riley May 22, allows the state to target the fastest-growing job sectors in the U.S. economy by offering the same capital credits and tax abatements that transformed Alabama into an automotive giant.

Neal Wade, chief of the Alabama Development Office, the state’s official industrial and business recruiter, is already using the new law to seek companies with 7,000 potential jobs. Targeted areas include “knowledge based” businesses, such as new and expanding corporate headquarters, data processing centers (including those of financial institutions and insurance companies), inbound call centers, and space research and technology facilities.

“Green” industries, such as companies that produce energy from biomass or renewable sources, and other “green” employers are also covered under the new law.

The 362 manufacturing companies previously recruited using these incentives report employment of 45,334 workers who pay an estimated $44.4 million in payroll income tax and $20.7 million in state retail sales tax each year.

For more information on the state’s incentives program, visit our incentive page or contact Anthony Oni at (205) 257-2374 or eaoni@southernco.com