The tax rate for business privilege tax is graduated, based on the entity's federal taxable income apportioned to Alabama. The rates range from $.25 to $1.75 for each $1,000 of net worth in Alabama. The minimum tax is $100.
The maximum business privilege tax for most business entities is $15,000. The exceptions are for financial institutions, financial institution groups, and insurance companies that have a maximum business privilege tax of $3,000,000.
Pollution Control Equipment - An entity can deduct from their Alabama net worth the net amount invested in all devices, facilities, or structures, and all identifiable components or materials for use therein, that are located in Alabama and are acquired or constructed primarily for the control, reduction, or elimination of air, ground, or water pollution or radiological hazards where such pollution or radiological hazards result from or would be caused by the taxpayer's activities in Alabama.
Air Carrier Hub Operation Equipment - An entity can deduct from their Alabama net worth the net amount invested by the taxpayer in all real and tangible personal property, equipment, facilities, structures, and components including, but not limited to, all aircraft replacement parts, components, systems, supplies, and sundries affixed or used on an aircraft, and ground support equipment and vehicles used by or for the aircraft, when used by certified or licensed air carrier with a hub operation within this state, for use in conducting intrastate, interstate, or foreign commerce for transporting people or property by air.
This credit or exemption is offered to help encourage economic growth in areas considered to have depressed economies (see Sections 41-23-24 and 41-23-30, Code of Alabama 1975 ). To qualify for this incentive, a business must meet detailed requirements concerning site location and employee qualifications. For information please contact:
Alabama Department of Economic and Community Affairs
Enterprise Zone Coordinator
401 Adams Avenue
P.O. Box 5690
Montgomery, AL 36103-5690