Summary
Up to 1.5% annually of qualified capital investment for up to 10 years (15 years in targeted/jumpstart counties or for underrepresented companies) for approved projects that create new jobs in Alabama. Discretionary — approved by AL Dept. of Commerce in consultation with the Governor.
Benefit
- Percentage
- 1.50% of qualified_capital_investment
- Flat
- —
- Duration
- 10 years
- Max annual
- — (taxpayer)
- Max total
- — (taxpayer)
- Carryforward
- 5 years
Program metadata
- Distribution
- taxpayer_earned
- Claimant subject
- business
- Refund/transfer election
- transferable_only
- Program family
- —
- Effective
- —
- Sunset
- —
- Application deadline
- —
- Transfer discount
- —
Hard requirements (0)
None.
Preference / tiering rules (1)
- min_new_jobsQualifying businesses must create new jobs in Alabama; exact threshold set per project agreement
NAICS industries (0)
Any.
Geo zones (1)
- distressed — · Alabama Targeted or Jumpstart Counties
Tags (6)
- discretionary: true
- requires_project_agreement: true
- approving_agency: Alabama Department of Commerce
- eligible_tax_types: income_tax,financial_institution_excise_tax,insurance_premium_tax,utility_tax
- transferable_at_pct: 85
- transfer_window_years: 3
Tax bases
- corporate_income_taxprimary
- financial_institution_excise_tax
- insurance_premium_tax
- utility_tax
Source
Section 40-18-376, Code of Ala. 1975
Last verified: 2026-04-12
Can offset income tax, financial institution excise tax, insurance premium tax, or utility taxes. Transferable or sellable at 85%+ face value for the first three years. Extended 5-year duration available for targeted/jumpstart counties and underrepresented companies.