Summary
Impact Investment Credit against state income taxes or financial institution excise taxes for investments in approved Opportunity Funds targeting low-income Opportunity Zones. Same benefits as federal OZ program. Total state credits capped at $50M (statewide aggregate). EXPIRED December 31, 2024.
Benefit
- Percentage
- —
- Flat
- —
- Duration
- —
- Max annual
- — (taxpayer)
- Max total
- $50,000,000 (statewide)
- Carryforward
- —
Program metadata
- Distribution
- taxpayer_earned
- Claimant subject
- business
- Refund/transfer election
- none
- Program family
- —
- Effective
- —
- Sunset
- 2024-12-31
- Application deadline
- —
- Transfer discount
- —
Hard requirements (0)
None.
Preference / tiering rules (0)
None.
NAICS industries (0)
Any.
Geo zones (1)
- opportunity_zone — · Federal Opportunity Zones in Alabama (low-income census tracts)
Tags (5)
- requires_project_agreement: true
- approving_agency: Alabama Dept. of Economic and Community Affairs (ADECA)
- eligible_tax_types: income_tax,financial_institution_excise_tax
- mirrors_federal_program: true
- total_state_credit_cap: 50000000
Tax bases
- corporate_income_taxprimary
- financial_institution_excise_tax
Source
Sections 40-18-6.1 and 40-18-8.1, Code of Ala. 1975 (Alabama Incentives and Modernization Act)
Last verified: 2026-04-12
Credit available only if investment does not meet agreed-upon rate of return. Project agreements administered by AL Dept. of Economic and Community Affairs. Not available for projects where fund committed to invest prior to August 5, 2019.