Alabama R&D Tax Credit Summary

ALABAMA R&D TAX CREDIT SUMMARY

Alabama R&D State Tax Credit

Alabama does not provide a credit for Research & Development. However, effective July 2, 2015, the Alabama Jobs Act provides incentives to qualified businesses for approved projects that create new jobs in Alabama, including those conducting space research. Any corporation, partnership, limited liability company, proprietorship, trust or other business entity, regardless of form, is allowed an annual credit of up to 5% of the capital costs of a qualifying project against the state income tax or financial institution excise tax liability generated by or arising out of the qualifying project in each of the 20 years commencing with the year during which the qualifying project is placed in service and continuing for 19 consecutive years thereafter.

Refundable/Transferable Tax Credit – No

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