hdr doing business

Taxes/Incentives

Blount County, Alabama offers some of the lowest tax rates in the country to new and expanding businesses. In addition, tax incentives for new and expanding companies are also available through state and local government programs. A list of incentives can be found below. For additional tax and incentive information, visit the Alabama Department of Revenue website.

  • Corporate Income Taxes
  • Capital Credit
  • Business Privilege Tax
  • Property Tax
  • Sales and Use Tax
  • State Unemployment Tax
  • Heroes for Hire Income Tax Credit

  • Corporate Income Taxes

    • Alabama corporate income tax rate is 6.5%
    • Based on the net taxable income of business done in Alabama
    • Businesses are allowed to deduct all of their federal taxes apportioned to Alabama

    Potential incentives include:

    • Net-operating loss carryforward
    • Pollution-control equipment deduction
    • Capital credit on income tax(see below)
    • Basic skills educational tax credit

  • Capital Credit

    • Available to qualifying all new and expanding companies and industries in the state of Alabama
    • Provides businesses with up to 5% credit of capital costs
    • Can be applied to the Alabama income liability generated by the project income
    • Available annually, up to a maximum of 20 years

    For more information, see the Capital Credit Information section on the ADOR website.

  • Business Privilege Tax

    Alabama’s business privilege tax is determined by a company’s net worth and is based on the company’s ability to pay. The rate ranges from $.25 to $1.75 per $1,000 of net worth in Alabama.

       Minimum Privilege Tax: $100

       Maximum Privilege Tax: $15,000¹

    * Source: Alabama Department of Industrial Relations

    ¹Financial institutions, financial institution groups and insurance companies may have a higher maximum privilege tax rate.

    Available incentives include:

    • Pollution-control equipment deduction
    • Air carrier with hub operations deduction

  • Property Tax

    Alabama state property tax rate is 6.5mills (.0065%). County and city rates vary and current rate information can be found in the Property Tax Section of the ADOR website.

    Possible incentives include:

    • Abatements for non-educational property taxes
    • Pollution-control equipment exemptions
    • No property taxes on inventory
    • Exemptions on raw materials inventory

  • Sales and Use Tax

    The state sales and use tax rates are 2.5%. Current rate information can be found in the City and County Tax Rates Section of the ADOR website.

    Available incentives include:

    • Abatement of State and non-educational local construction-related taxes
    • Raw materials, pollution control equipment, quality control testing, and donations to charitable entities exemptions
    • Utility gross receipts tax exclusions
    • Discount if sales tax is paid promptly

  • State Unemployment Tax

    • Employer requirement for the state unemployment tax is based on the first $8,000 of each employee's compensation
    • Rates vary from 0.5% to 5.4%
    • New employer rate is 2.7%
    • Rates are based on employer's experience rating
    • Employees do not contribute

  • Heroes for Hire Income Tax Credit

    • For businesses with less than 50 employees
    • One-time, $1,000 tax credit for each recently deployed and now discharged, unemployed veteran hired

    For more information on the Heroes for Hire Income Tax Credit, visit the Alabama Department of Commerce website.

    For help determining tax rates and finding available incentives, contact the Blount County EDC.