| State: |
AL |
| Incentive Type: |
Special Purpose Zone Incentives and Credits |
| Incentive Title: |
Other Tax Incentives/Credits |
| Description: |
1) COAL CREDIT Qualified coal producers can receive a state income tax credit of $1/ton of increased production.
2) GULF OPPORTUNITY ZONE Any business considering an investment in new, replacement, or expanded operations, buildings or equipment within the GO Zone are eligible to receive various credits and incentives. These incentives include: (a) a bonus depreciation deduction equal to 50% of its cost in addition to normal depreciation deduction, (b) tax exempt financing has been authorized for a wide use of commercial projects; AL currently has an excess of 2.1 billion tax exempt gold bonds, (c) 100% first year equipment expense deduction; small businesses are permitted to expense up to $200,000 of equipment and computer software expense, (d) demolition and clean-up expense - Businesses are allowed to expense 50% of their demolition and clean-up expenses incurred through 2007; (e) incentives for employers - the WOTC qualifying definition has been expanded. |
| Eligibility Requirements: |
1) Qualifying producers must file required applications to the Department of Revenue.
2) Businesses must expand, construct, and renovate within the GO Zone area. Businesses must apply with the State, Local and Federal authorities which administer the various incentives.
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| Geographic Restrictions: |
1) Statewide; 2) Gulf Opportunity Zones |
| Granting Authority: |
State of Alabama |
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