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Tax Abatements

If the proper procedures are followed, qualifying industries may abate all state and the local non-educational portion of construction related transaction (sales and use) taxes associated with constructing and equipping a qualifying project. For state purposes, the general state sales tax rate of four percent and the state manufacturing machinery and equipment tax rate of 1 and 1/2 percent can be abated to qualifying industries. Local taxes that are not earmarked for education can be abated.

Additionally, qualifying industries can receive an abatement on the state and local non-educational portion of the property tax on the real and personal property incorporated in to a qualifying project for up to a maximum of 20 years (data processing centers can be abated up to 30 years).

Mortgage and recording taxes with respect to mortgages, deeds, and documents relating to issuing or securing obligations and conveying title into or out of a public authority, city, or county government with respect to private use industrial property may also be abated.

Alabama offers several types of statutory tax abatements.  See below for the tax abatement that is right for your project.

Available Abatement Programs

Tax Incentive Reform Act of 1992 (Chapter 9B Abatements)

For New and Expanding Projects, Including Upgrades

Learn more about Chapter 9B Abatements

Learn more about Chapter 9B Abatement Procedures

Abatement forms and templates

Learn more about Tax Abatement FAQ

 

Alabama Reinvestment Act (Chapter 9G Abatements)

For Renovation, Modification and (True) Replacement of Equipment Projects

Learn more about Chapter 9G Abatements

Learn more about Chapter 9G Abatement Procedures

Abatement forms and templates

Learn more about Tax Abatement FAQ

 

Brownfield Development Tax Abatements (Chapter 9C Abatements)

For Brownfield Development Projects

Learn more about Chapter 9C Brownfield Development Abatements

Abatement forms and templates

 

Authorizing Statutory Provisions for tax abatements

 

Contact Tax Abatements

Ashley Moon
Revenue Examiner, CPM
Office of the Commissioner
Alabama Department of Revenue
P.O. Box 327001
Montgomery, AL 36132-7001

(334) 242-1184
ashley.moon@revenue.alabama.gov

Kelly Graham
Director of Economic Development
Office of the Commissioner
Alabama Department of Revenue
P.O. Box 327001
Montgomery, AL 36132-7001

(334) 242-1188
kelly.graham@revenue.alabama.gov