Limestone County offers attractive tax incentives and rates for new and expanding industries. Various incentives are available on the state and local level.
Click the tabs below to learn more about available tax incentives in Limestone County, Alabama:
Business Privilege Tax Incentives
The Alabama business privilege tax is based on the company’s net worth in Alabama. Deductions are available for companies investing in certain types of pollution control equipment and for investments made on qualifying aircraft-related property, equipment, facilities, structures and equipment when used by a certified or licensed air carrier with a hub.
Corporate Income Tax Incentives
Alabama is one of only two states that allow for a full deduction for all federal income taxes apportioned to Alabama. Additionally, the state offers highly competitive income tax incentives for new and expanding industries.
Incentives for business in Limestone County, Alabama include:
- Net operating loss carryforward
- Pollution control equipment
- Income tax capital credit
- Basic skills education tax credit
Property Tax Incentives
Alabama does not levy property tax on inventory, and the state allows for exemptions for raw materials and finished goods inventories. However, inventory used for lease or rental purposes is subject to the property tax. Other incentives include deductions for pollution control equipment and special local incentives for new and expanding businesses in Athens, Alabama.
Sales & Use Tax Incentives
Alabama grants sales and use tax incentives and deductions for new and expanding businesses within the state.
Incentives for businesses in Limestone County, Alabama include:
- Vendor discount for sales taxes paid timely
- Exemptions for raw materials
- Sales and use tax reciprocity
- Deductions for pollution control equipment
- Exemptions for quality control testing and donations to charitable entities
- Utility gross receipts tax exclusions
Property, Sales and Use Tax Abatements
Limestone County and cities within the county have the ability to provide abatements for local property and sales tax liabilities. Businesses must meet certain requirements to qualify.
Available abatements include:
- State sales and use taxes
- Non-educational county and city sales and use taxes
- Non-educational state, county and city property taxes (up to 10 years)
- Mortgage and recording taxes
Heroes for Hire Income Tax Credit
Employers are eligible for a $1,000 nonrefundable income tax credit for each full-time recently-deployed unemployed-Veteran hired. Limestone County’s close proximity to Redstone Arsenal offers a high concentration of Veterans seeking to participate in the workforce.
Specific information about the tax incentives available to new and expanding industries in Athens and Limestone County, Alabama is available from the Limestone County Economic Development Association. To request more information, call 256-232-2386.
For the Alabama Department of Commerce/Department of Revenue summary of Taxes and Incentives, click here.
Tax information can also be found on the Alabama Department of Revenue website.
Jobs Tax Credit
- Cash refund of up to 3% of the previous year's gross payroll (not including fringe benefits) for qualifying new, direct jobs. Incentive period is up to 10 years.
- Up to an additional 0.5% cash refund is available on the wages of veterans, for companies, which employ a workforce composed of at least 12% of veterans.
- Up to an additional 1% cash refund for projects in counties with a population less than 25,000. Two sites per year located outside of these counties can receive this refund at the Governor's discretion.
Investment Tax Credit
- Credit of up to 1.5% of the qualified capital investment costs for a qualifying project each year for up to 10 years (Up to 15 years for projects in counties with populations less than 25,000 selling their output nearby)
- Credits can be used to reduce income tax (or taxes on banks or insurance companies), and taxes for utility services.
- Credits can be carried forward for five years.
- The first three years of the credits may be sold to create cash for projects, with Department of Commerce approval.