| Alabama Incentives |
| Taxable Industrial Revenue Bonds |
- Taxable Industrial Bond issues may be issued by the municipality in which the project is located for transactions that do not qualify for tax exempt bond financing.
- Taxable IRB's continue as one of the mainstays of industrial finance because they may be issued with fewer restrictions and in unlimited amounts while the user maintains tax savings.
|
| Pollution Control Facilities |
- Air and water pollution control facilities automatically exempt from sales, use and property taxes if taxpayer claims the exemption.
|
| Non-Tax Incentives |
| Alabama offers a number of non-tax incentives that assist in the start-up of a new or expanding project. These inducements include training assistance and financial assistance. The following summarizes the most significant programs. |
| Alabama Industrial Development Training |
- Training services offered in many areas and are free of charge to new and expanding industries throughout the state.
- Program extremely flexible and custom-designed for each industry.
|
| Site Preparation Grants (Also known as Industrial Development Grants) |
- The State Industrial development Authority (SIDA) issues grants for the preparation of project sites.
- Qualifying projects include any trade or business designated in SIC Code Classification Major Groups 20 through 39, Major Groups 50 and 51, Industrial Group 737 and Industry Numbers 724, 8731, 8733 and 8734.
|
| Alabama State Employment Services (ASES) |
- ASES works with AIDT to provide job screening and testing at no charge.
|
| Alabama Plan for Linked Deposits |
- The Alabama Plan for linked Deposits allows State Treasurer to make deposits in state banks on which banks pay 2% below the normal interest rate paid to the state for it's funds. The reduction in the interest rate paid by the bank must be passed on to the borrowers on loans qualifying for this program. It amounts to a 2% subsidy on the borrowers interest rates for two years to help stimulate economic growth in the state.
|
| Small Business Administration |
- The Small Business Act of 1953, Section 7(a), as amended, guarantees loans to small businesses which are unable to obtain financing in the private credit marketplace, but can demonstrate an ability to repay loans granted.
- Small Business Investment Act of 1958, as amended, Title V, Section 504 and 505, assists small business concerns by providing long-term, fixed-rate financing for fixed assets through the sale of debentures to private investors.
|
| Alabama Industrial Access Road and Bridge Program |
- The Alabama Industrial Access Road & Bridge Corporation provides funding for industrial access road and bridge construction in Alabama.
- Eligible industrial access projects may be new road construction or road improvement to assist new or expanding industry (example: turn-lanes, deceleration lane, paving of unimproved roads, widening, resurfacing, bridge replacement, etc.)
- Proposed road projects must be a public right-of-way and, if funded, shall constitute part of the public highway and street system of the state.
|
| Alabama Infrastructure Grants |
- The State Economic Development Grant Program administers a pool of funds available for infrastructure grants.
- These grants are made to a governmental body to facilitate the expansion or development of new industry by funding public infrastructure projects, including water and sewer line and access roads.
- Qualifying projects include any trade or business designated in SIC Code Major Groups 20 through 39, or consisting of major warehouse or distribution centers.
- At least 15 jobs must be created.
- Generally, grants do not exceed $200,000 per project.
- Source of funds include Alabama Department of Econimic and Community Affairs (ADECA), Community Development Block Grant (CDBG), and State and Federal Governments.
- Other Criteria / requirements apply.
|
| Rural Economic and Community Development Loan and Grants |
- A business can qualify if not located in MSA
- Loans guaranteed up to 75-80% of the loan.
- Small Grants up to $100,000 also available.
|
| The information presented is general in nature and may not apply to your specific situation. Legal advice should be sought before taking action on the information provided. |
