Ala. Code § 40-9D-1 Short Title.
40-9D-1. Short Title.
This chapter shall be known and may be cited as the “Alabama Economic Incentive Enhancement Act of 2007.”
(Act 2007-199, p. 234, §1.)
Alabama Economic Incentive Enchancement Act of 2007.
Ala. Code tit. 40, ch. 9D
in effectAla. Code § 40-9D-2 Legislative Intent; Scope; Exclusiveness.
40-9D-2. Legislative Intent; Scope; Exclusiveness.
(a)(1) The legislative intent of this chapter is to provide incentives necessary to attract very large projects which shall generate a substantial number of jobs and economic growth for the citizens of Alabama.
(2) This chapter is intended as minimum code and the Department of Revenue may adopt rules under the Administrative Procedure Act to provide additional clarification, not inconsistent with this chapter.
(3) In the event of any conflict between this chapter and those of any other specific statutory provisions contained in other chapters of this title, or of any other title, it is declared to be the legislative intent that, to the extent such other specific provisions are inconsistent with or different from the provisions of this chapter, this chapter shall prevail.
(b) The provisions contained in this chapter shall govern the tax incentives for very large projects, as defined below, that locate in Alabama subsequent to December 31, 2006.
(Act 2007-199, p. 234, §2.)
Ala. Code § 40-9D-3 Definitions.
40-9D-3. Definitions.
(1) CAPITAL COSTS. Costs as defined in subdivision (2) of Section 40-18-190.
(2) CAPITAL CREDIT. An amount defined in subdivision (3) of Section 40-18-190.
(3) CONSTRUCTION RELATED TRANSACTION TAXES. The sales and use taxes defined in subdivision (3) of Section 40-9B-3.
(4) QUALIFYING ENTITIES. Those entities that invest in large projects in Alabama that employ, prior to December 31, 2015, at least 2,000 full time on site employees with benefits at a single site in Alabama and prior to December 31, 2011, invest at least $2.5 billion in capital costs at a single site in Alabama. For periods following December 31, 2015, the 2,000 employment level required to qualify as a qualifying entity shall be maintained for all years thereafter.
(Act 2007-199, p. 234, §3.)
Ala. Code § 40-9D-4 Enhancement of Abatements and Capital Credits.
40-9D-4. Enhancement of Abatements and Capital Credits.
(a) For the entities that qualify under this chapter, an abatement shall be allowed for ad valorem taxes. Such abatement shall follow the provisions and definitions of Chapter 9B of this title with the following exceptions:
(1) The maximum exemption period as provided in subdivision (10) of Section 40-9B-3 shall be 20 years.
(2) This abatement shall apply to real property located at other Alabama project sites built, owned, and operated by the qualifying entity as a component of the qualifying project. Such abatement shall be made pursuant to the provisions of the granting authority where the ancillary property is located.
(3) This abatement shall apply to the qualifying entity’s tangible personal property located at other Alabama project sites if the property is a component of the qualifying project. Such abatement shall be made pursuant to the provisions of the granting authority where the ancillary property is located.
(b) For the entities that qualify under this chapter, an abatement shall be allowed for construction related transaction taxes. Such abatement shall follow the provisions of Chapter 9B of this title.
(c) For the entities that qualify under this chapter, an abatement shall be allowed for taxes related to mortgages and recording taxes with respect to mortgages, deeds and other documents as allowed in the provisions of Chapter 9B of this title.
(d) For the entities that qualify under this chapter, in addition to the allowances found in Section 40-21-83, an exclusion shall be allowed for a 10-year period from the utility taxes contained in subsection (a) of Section 40-21-82 of this title. The beginning date of the aforementioned 10-year period shall commence using the provisos of subdivision (10) of Section 40-9B-3.
(e) For the entities that qualify under this chapter, an enhanced capital credit shall be allowed. This capital credit shall follow the provisions of Article 7, commencing with Section 40-18-190, of Chapter 18, of this title, and shall be allowed as a credit to the tax provided in Chapter 18, with the following exceptions:
(1) The maximum period shall be extended to 30 years;
(2) The maximum amount allowed in any one tax year, within the above extended period, shall not exceed five percent of the capital cost of the qualifying project, such amount to be credited or allowed against the state income tax liability generated by or arising out of the qualifying project in each of the 30 years commencing with the year during which the qualifying project is placed in service and continuing for 29 consecutive years thereafter; and
(3) The total amount utilized over the extended period shall not exceed 100 percent of the capital cost of the project.
(Act 2007-199, p. 234, §4.)
Source: Alabama Legislature (alison.legislature.state.al.us)URL: https://alison.legislature.state.al.us/code-of-alabamaFetched: 10/20/2026