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Tax Abatements

TAX ABATEMENTS

Alabama offers different types of statutory tax abatements to qualifying industries.

 

Additional
Resources

Abatement Mailing Address

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

 

QUESTIONS?

Tawanna Small
Preeti Gratz
Kelly Graham


334-242-1175

Tawanna Small: 334-242-1184
Preeti Gratz: 334-353-1087
Kelly Graham: 334-242-1188

Incentives offered to qualifying projects
  • Abatement of non-educational portion of sales and use taxes on construction materials, equipment,
    and other capitalized costs.

      • State taxes – 4% of the general rate and 1.5% manufacturing rate.
      • Local taxes – Taxes not earmarked for education purposes (rates vary by locality).
  • Property tax abatement on the real and personal property incorporated into 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 that convey title into or out of a public authority, city, or county government
    with respect to private use industrial property may also be abated.

To receive an abatement for any or all of these taxes, a project must meet certain qualifications and
follow certain procedures, as determined by the law and regulation. Abatements are granted by the local
granting authority, and provisions vary by each jurisdiction. To learn about a specific type of abatement,
please click on the Chapter 9B, 9G, or 9C abatements below.

Chapter 9B Abatements
For New and Expanding Projects, Including Upgrades
Chapter 9G Abatements
For Renovation, Modification and (True) Replacement of Equipment Projects
Chapter 9C Abatements 
For Brownfield Development Projects

 

 

Contractor information
For general contractors and
sub-contractors who are
working on an abated
project for companies