Tax Incentives
Tax incentives are available for new and expanding companies in Chambers 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 Chambers County Development Authority at (334) 642-1412.
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
- Net-operating loss carryforward
- Pollution-control equipment deduction
- Income tax capital credit (see below)
- Basic skills educational tax credit
Capital Credit
- Available to qualifying all 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.
Favored Geographical Area
Chambers County has been designated as a Favored Geographical Area, allowing qualifying new and expanding companies throughout Chambers County to apply for the capital investment tax credit incentive at lower investment and new employee thresholds. For more information, see the Favored Geographic Area PDF from the Economic Development Partnership of Alabama (EDPA).
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
- 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.
- 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% while Chambers County sales and use tax rates are both currently 1.0%. County rates vary and current rate information can be found in the City and County Tax Rates Section of the ADOR website.
- 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
