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Investment Credit

INVESTMENT CREDIT

Section 40-18-370 through Section 40-18-383, Code of Alabama 1975

 

 

Additional
Resources

 

Act 2015-27

Act 2019-392

Alabama Department of Commerce
401 Adams Avenue
P.O. Box 304106
Montgomery, AL 36130-4106
www.madeinalabama.com
Phone: 334-242-0400

 

 

QUESTIONS?


Preeti Gratz
Kelly Graham


334-242-1175

Section 40-18-376 provides for a discretionary credit depending upon the qualifications of the approved company’s capital investment and the requirements set forth in §40-18-371. Only taxpayers that have been approved by the Alabama Department of Commerce for qualifying projects are eligible to claim the credit as allowed by the executed State Project Agreement.  Once the Alabama Department of Commerce certifies the annual Investment Credit, it must be claimed via My Alabama Taxes (MAT). Please see the bottom of this page for further details on MAT.

For more information regarding eligibility, qualifications, and procedures for a new or expansion project, please contact Ted Clem, Director of Recruitment and Retention at ted.clem@commerce.alabama.gov or 334-242-0400. For additional information on the Investment Credit, please click here.

 

Provisions of the Investment Credit include:
  • Tax credit of up to 1.5% annually of qualified capital investment for a qualified project, for a period of up to 10 years*
  • The tax credit can be utilized against:
    • Income taxes, including estimated taxes;
    • Financial institution excise tax;
    • Insurance premiums tax;
    • Utility taxes paid; or
    • A combination of the above taxes for a period of 10 years.
  • The annual credit is not refundable, but any unused credit associated with the annual credit can be carried forward for up to 5 years.

*For qualifying investments in a targeted or a jumpstart county, the incentive period is available for up to 15 years (Act 2019-392).

 

 

 

 

To utilize the credit on the income tax return, an allocation schedule must be made via My Alabama Taxes (MAT). Please click here for further details.