About 'tuscaloosa sales tax'|Alabama holds its first-ever severe weather sales tax holiday July 6-8
Alabama, like the rest of the U.S., has been severely affected by the economic downturn and credit crisis, resulting in a sharp drop in the Business Leaders Confidence Index for the 1st quarter of 2009. The state's manufacturing sector, particularly the automotive industry, has been particularly hard hit. But prior to this crisis, Alabama had been recognized for its favorable business climate and had weathered the recession reasonably well through mid 2008. The Alabama state government has encouraged businesses to locate their operations in the state, make investments, and hire local workers by promoting a favorable business climate. Dr. Deter Zetsche, Chairman of DaimlerChrysler AG, recognizes the great support from the State of Alabama in the success of their plant in Tuscaloosa. And Charles Allen, Vice President of Business Operations for Boeing, points out the well-trained and educated workforce, the positive business environment, and the support from state and local officials as factors in the success of Boeing's operations in the state. Hyundai set up its first U.S. manufacturing plant in Montgomery, Alabama. With an investment of $1.4 billion, it is one of the most advanced assembly plants in North America. In its Survey of the Top 25 State Business Climate, Site Selection magazine ranked Alabama as 5th in the country in 2007. And AIDT, Alabama's workforce training program, which is ISO 9001:2000 certified, was ranked second in the U.S. in 2007 by Expansion Management. AIDT provides job-specific training, free of charge, to new and expanding businesses throughout Alabama. Alabama offers many industrial and commercial buildings for sale or lease throughout the state, and nearly 600 industrial parks, greenfield sites and reusable property sites. Property taxes are among the lowest in the country. And the Alabama Department of Environmental Management provides "one-stop" permitting for all major federal and state environmental laws. Tax incentives for businesses in Alabama include a deduction for pollution control equipment, a 15-year carryforward for net operating losses, a basic skills educational tax credit, an income tax credit for capital projects, and certain abatements on property and sales taxes. When a business is installed in certain designated areas in Alabama called Enterprise Zones, or when the business makes investments or hires workers in these areas, it qualifies for special state tax credits. According to the Alabama Department of Economic and Community Affairs, Enterprise Zones have been designated in the cities of Birmingham, Montgomery and Prichard, and in various counties throughout the state. Hiring incentives in enterprise zones include a tax credit of up to $2,500 for each new permanent employee hired, and a credit of $1,000 per permanent employee for the cost of training the employee in new skills. New investments or improvements to existing facilities in an enterprise zone qualify for a tax credit of 10% on the first $10,000, 5% on the next $90,000, and 2% on the remaining investment. Businesses can also receive an exemption from the Alabama sales and use tax on the materials purchased to construct a new building or to make additions or improvements to an existing building, and on machinery and equipment used in the enterprise zone. Alabama's future economic development, beyond the current economic crisis, may depend partially on the fate of the automotive industry and developments in aerospace and biotechnology, in which Alabama is an innovative leader. But the infrastructure and incentives Alabama has established to promote its business climate should encourage investment and employment and contribute to stimulating business activity in the state. Sources: Alabama Business Climate - Alabama State Government Alabama Enterprise Zone Program - Escambia County Industrial Development Authority Enterprise Zone Program - Alabama Department of Economic and Community Affairs State Enterprise Zones - Economic Development Partnership Alabama Tax Incentives for Industry - Alabama Department of Revenue |
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