Alabama Jobs Act
Alabama Jobs Act is an incentive to stimulate economic growth through new job creation and capital investment.
Jobs Credit Benefits
- The job creation incentive is an annual cash rebate up to 3% of the previous year’s gross payroll (not including fringe benefits) for eligible employees for up to 10 years.
- For companies employing at least 12% veterans in their eligible workforce, up to an additional 0.5% job credit is available for the wages of veterans.
Investment Credit Benefits
- The investment incentive is a credit of up to 1.5% of the qualified capital investment expenses for a qualifying project for up to 10 years. This credit can be taken against the Alabama income tax liability and/or utility tax liability.
- Investment Credit may be carried forward for 5 years.
- At the discretion of the Alabama Department of Commerce, the Investment 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 must be approved by the Alabama Department of Commerce.
Requirements: Job Credit and Investment Credit
- Projects must have a qualifying business activity (Section 40-18-372 of the Code of Alabama, 1975).
- Projects must create at least 50 net new jobs (exceptions noted below).
- Projects in the following industries are required to create net new jobs, but are not subject to the minimum job creation requirements of the Jobs Act: chemical manufacturing, data centers, engineering, design, or research, and metal/machining technology or tool making.
- The Jobs Credit includes wages from Alabama residents only.