hdr doing-business

Tax Incentives

Tax incentives are available for new and expanding companies in Cleburne County. A summary of those incentives can be found below. Additional information can be found on the Alabama Department of Revenue website.

In addition to state level tax incentives, incentives at the local level may be available. For help determining tax rates and finding available incentives, contact the City of Heflin Industrial Development Board at 256-463-2290.

Corporate Income Taxes

  • Corporate income tax rate is 6.5%
  • Based on the net taxable income of business done in Alabama
  • Businesses are permitted to deduct all of their federal taxes apportioned to Alabama

Potential incentives include:

  • Net-operating loss carry forward
  • Pollution-control equipment deduction
  • Income tax capital credit (see below)
  • Basic skills educational tax credit

Capital Credit

  • Available to all qualifying new and expanding companies and industries
  • Gives businesses up to 5% credit of capital costs
  • Can be applied to the Alabama income liability generated by the project income
  • Available annually for a maximum of 20 years

For more information, see the Capital Credit Information section on the ADOR website.

Business Privilege Tax

  • Based on a company's net worth in Alabama and the company's ability to pay
  • Rate ranges from $.25 to $1.75 for each $1,000 of net worth in Alabama

Available incentives include:

  • Pollution-control equipment deduction
  • Air carrier with hub operations deduction

Property Tax

Alabama state property tax rate is 6.5mills (.0065%). County and city rates vary and current rate information can be found in the Property Tax Section of the ADOR website.

Possible incentives include:

  • Abatements for non-educational property taxes
  • Pollution-control equipment exemptions
  • No property taxes on inventory
  • Raw materials inventory exemptions

Sales and Use Tax

The state sales and use tax rates are 2.5%. County rates vary and current rate information can be found in the City and County Tax Rates Section of the ADOR website.

Available incentives include:

  • Abatement of State and non-educational local construction-related taxes
  • Raw materials, pollution control equipment, quality control testing, and donations to charitable entities exemptions
  • Utility gross receipts tax exclusions
  • Discount if sales tax is paid promptly

State Unemployment Tax

  • Employer requirement for the state unemployment tax is based on the first $8,000 of each employee's compensation
  • Rates vary from 0.5% to 5.4%
  • New employer rate is 2.7%
  • Rates are based on employer's experience rating
  • Employees do not contribute
    •  

Jobs Act INCENTIVES

Cleburne County is a targeted community (having a population of under 25,000) and small businesses are only requred to have 25 jobs to qualify for Jobs Act Incentives.

Click here for a full summary of Alabama Jobs Act Incentives and Tax Abatements.