Business And Tax Incentives Russellville Alabama Can Offer

Russellville is committed to the promotion and maintenance of a competitive business climate. The State of Alabama has developed one of the most aggressive tax incentive programs in the nation for new and expanding industry.

The Alabama Department of Revenue administers several tax incentives for existing industries, expanding industries and new industries locating to Alabama. Alabama tax incentives are created and administered under the Alabama Constitution of 1901 and the Code of Alabama 1975. The statutory basis for Alabama tax incentives gives industry a stable framework for long-term investment. Some of these programs and incentives are summarized below and in the additional Adobe PDF files.
A summary of programs may be seen here.

Capital Investment Tax Credit
The current rate of taxation in the State of Alabama is 6.5 percent.
The Capital Investment Tax Credit Program allows an income tax credit of up to 5 percent of initial capital cost per year for 20 years of qualified projects to new and expanding companies. The deduction of federal income taxes from the state tax liability creates a net effective rate of approximately 4.8 percent. The 5 percent credit can effectively eliminate the Alabama income tax liability generated by a qualifying project. For specific details, click below.
Capital Investment Tax Credit Document

Site Preparation Grants
One of only a few states that offer site preparation grants, The State Industrial Development Authority (SIDA) sells bonds to make grants to counties, municipalities, local industrial and economic development boards or councils, airport authorities, public corporations and certain state entities to pay for preparation of project sites owned or possessed by lease by these grantees. SIDA is authorized by Alabama law, to issue grants for the preparation of Project Sites. For specific details, click below.
Grants and Loans Document

Industrial Revenue Bonds
Industrial revenue bonds (IRBs) provide financing for land, building and equipment for new and expanding manufacturing plants. In addition, certain expenses such as architectural, engineering, legal and administrative fees associated with the sale of the bonds can be paid from the bond proceeds. For specific details, click below.
Industrial Revenue Bond Document

Loan Guarantees and Funds
Section 108 loan guarantee provides communities with an efficient source of financing for economic development and large-scale physical development projects.
Tennessee Valley Authority's economic development loan fund is a multi-million dollar revolving loan program that provides financing for new industrial plants, plant expansions, plant retention, and infrastructure development such as speculative industrial buildings and industrial parks.
In addition public/private grants, designed to assist Alabama companies in expanding export activities through participation in foreign trade shows and missions, are available to Alabama companies.

BellSouth Incentives
Approved by the Alabama Public Service Commission and supported by public and private economic developers, BellSouth's tariffed incentive package encourages new businesses to locate in our state. It also encourages businesses to expand into our rural areas. The incentives complement the Alabama Enterprise Zone Act of 1987 and the State Incentive Plan of 1997 (Capital Credit Act). The funds can be used for service deposits, local monthly charges, and applicable connection/installation service charges. For specific details, click below.
Bell South Incentives Document

Source: Alabama Economic Development Partnership

Inventory Tax
Property tax exemption on all business inventory, including all materials used in manufacturing, goods in process, stored manufacturing goods and goods in transit.

Sales and Use Tax
Reduced rate of 1 1/2 percent on new machinery in manufacturing; may be exempted. General rate of 4 percent on other equipment and construction materials not used in manufacturing.

Property Tax
Industrial projects may be exempted from ad valorem (property) taxes for up to 10 years (except school taxes) with fixed assessment ratio established at 20% of appraised value for manufacturers.

Education
Employers who provide or sponsor an approved basic skills education program qualify to receive a 20% credit on state corporate income tax liability.

Pollution Control Equipment
Tax exemptions and deductions are available for pollution control equipment, construction materials and facilities.

Utilities
Non-taxable exemption of 4% utility gross receipts tax for certain manufacturing processes.

Foreign Trade Assistance
Alabama Development Office offers trade promotion services to Alabama manufacturers, including:

participation in overseas catalog shows, trade shows, and trade missions
opportunities to meet one-on-one with foreign buyers visiting Alabama
a listing in the Alabama International Trade Directory, a publication that is disseminated worldwide.
Alabama Development Office representative offices, located in Hannover, Germany and Tokyo, Japan, are available to lend assistance whenever possible to Alabama manufacturers.
additional export assistance available through a number of nonprofit trade associations, chambers of commerce, customhouse brokers, foreign freight forwarders and honorary consulates.
four Alabama banks provide complete international banking services for companies located in Alabama and throughout the Southeast.

Source: Alabama Department of Revenue