Chapter 9C Abatements

About the Brownfield Development Tax Abatements

Chapter 9C Abatements

• The Brownfield Development Tax Abatement Act             (Chapter 9C, Title 40, Code of Alabama 1975 ) gives cities and counties the ability to abate the following:

• • Non-educational city and county sales and use taxes
  • Non-educational state, city and county property taxes – up to 20 years
  • Mortgage and recording taxes.

To receive an abatement for any or all of these taxes, a business must meet certain qualifications and follow certain procedures, as determined by law and regulation.

Statutory Requirements for Brownfield Abatements

The property must be in the Alabama Department of Environmental Management’s voluntary cleanup program to qualify for Brownfield abatements.

Capital Investment Requirement

New Company

There is no threshold or limiting investment amount for new Brownfield abatement project. The total amount of the capital investment by a company that is locating in Alabama is eligible for the tax abatements.

Major Addition

The additional capital investment by a company that is expanding their current facilities on Brownfield development property must equal the lesser of:

• 30 percent of the original cost of the property as remediated; or
• $2,000,000.

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