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Alabama Investment Credit

Qualifying projects may be eligible for a credit up to 1.5% of the qualified capital investment expenses each year for up to 10 years.

  • This credit can be taken against the Alabama income tax liability and/or utility tax liability.
  • This credit can be carried forward for 5 years.
  • This 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 be approved by the Alabama Department of Commerce.
  • There is no job minimum for chemical manufacturing, data centers, metal/machining, engineering, design, and research projects. All other projects must create 50 jobs.
  • This is a discretionary incentive. The availability of this incentive is based on the results of an economic impact analysis performed for each project.
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