Incentives
Franklin County, Alabama offers competitive tax incentives and business assistance programs to help industries locate and expand facilities within the county. State tax abatement and incentives information can be found on the
Alabama Department of Revenue website. For assistance with these and other business assistance programs, contact the Franklin County Development Authority at (256) 337-8727.
Right-to-Work
Alabama's right to work law declares as public policy that the right of persons to work shall not be denied or abridged on account of membership or non-membership in any labor union or labor organization. No person shall be required by an employer to become or remain a member of any labor union or labor organization as a condition of employment or continuation of employment. Twenty-two states have passed Right to Work legislation.
View a map of these states.
Alabama Business Privilege Tax Incentives
The Alabama Business Privilege Tax is based on the net worth of corporations, limited liability entities and disregarded entities. Tax deductions are available for qualifying companies that invest in certain types of pollution control equipment.
Income Tax Capital Credit
The Income Tax Capital Credit is available to all types of businesses, every year for 20 years. The credit is calculated at 5% of the total capital costs of the qualifying project and is applied to the Alabama Income Tax liability.
Qualifying Project must be a:
- Headquarters Facility
- Manufacturing (NAICS Sectors 31, 32 and 33, excluding 311811)
- Wholesale Trade (NAICS Sectors 42)
- Publishing Industries – Except Internet (NAICS Subsector 511)
- Data Processing Services (NAICS Industry Group 5142)
- Computer Systems Design and Related Services (NAICS Industry Group 54171)
- Online Information Services (NAICS Industry 514191)
- Any Process or Treatment Facility which recycles, reclaims, or converts materials, which includes solids, liquids or gases, to a reusable product.
Capital Investment must be:
- Not less than $2,000,000 for new, expansion, and headquarters facility projects
- Not less than $1,000,000 for small business addition projects
Employee Requirements must be:
- At least 20 new employees at new, expansion, or headquarters facility projects
- At least 15 new employees at small business addition projects
- New Employees must be paid either an average hourly wage of at least eight dollars per hour or an average total compensation of not less than ten dollars per hour, including benefits. There are exceptions to this qualification requirement.
Other Income Tax Incentives
Additional Income Tax incentives are available for qualifying businesses. They include:
- Net Operating Loss Carry-Forward
- Pollution Control Equipment
- Educational Tax Credit
Property and Sales Tax Abatements
Local property and sales tax abatements are available to qualifying new or expanding businesses in Franklin County.
Available abatements include:
- State Sales and Use taxes
- Non-Educational County and City Sales and Use Taxes
- Non-Educational State, County and City Property Taxes (up to 10 years
- Mortgage and Recording Taxes
Other Property Tax Incentives
Alabama does not levy property taxes on certain types of inventory, with additional exemptions for raw materials and finished goods inventories. Property tax incentives are also available for qualifying companies who invest in certain types of pollution control equipment.
Other Sales and Use Tax Incentives
Exemptions on the Alabama Sales and Use Tax include raw materials used in the manufacturing or compounding process, as well as exemptions for certain types of pollution control equipment.
Site Preparation Grants (Industrial Development Grants)
Projects investing less than $25 million could be eligible for site preparation grants. Grant award amounts are determined by a percentage of the capital costs involved in the project.
Industrial Access Road and Bridge Program
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Funding for new road construction or improved road construction is available from the Alabama Department of Transportation (ALDOT). The funding is provided to a city or county and is used to assist new or expanding industries.
Industrial Revenue Bonds (IRBs)
Industrial Revenue Bonds for qualifying companies may be available from the Franklin County Economic Development Authority. IRBs provide funding for new and expanding industries for expenses such as land, buildings and equipment.
HUBZone (Historically Underutilized Business Zone)
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Franklin County is a qualified HUBZone designated area. Small businesses located within Franklin County or with employees residing in the county, may benefit from federal contracting preferences through the HUBZone Empowerment Contracting Program. The program is regulated by the U.S. Small Business Administration (SBA).
USDA Rural Development
Visit Website.Grants, loans and other types of funding is available through the United States Department of Agriculture to assist new and expanding businesses in rural areas. The USDA also provides technical and business support programs.
TVA Incentives
Visit Website. (A number of development assistance financing and programs are available through the Tennessee Valley Authority. The programs include grants, loans and technical assistance.
TVA Program Include:
- Economic Development Loan Fund (EDLF)
- Enhanced Growth Credit