Business Climate

Operating Costs and Incentives

Alabama is consistently rated as one of the most favorable business climates in the U.S. Certainly our workforce, our training programs, our geographic advantages, and high quality of life factor into these ratings, but one more is our low overall tax structure and the economic incentives for new & expanding firms. The goal of these incentives is to promote a long term partnership between business and community through a stable and successful framework.

Pickens County Alabama has an interest in your business. We understand that while financial incentives are not the primary decision-making element, they are a part of the selection process. We encourage you to learn more about our financial environment and possible tax incentives from the information below and by following the links provided, but if any more information is desired, we will work tirelessly to meet your needs.

Corporate Income Tax

The corporate income tax rate is 6.5 percent. With an estimated net effective rate of 4.52 percent, Alabama maintains one of the lowest corporate income tax rates in the nation. The state is one of only two that allow a full deduction of federal taxes paid from Alabama income.

Business Privilege Tax Cap

The maximum business privilege tax for most business entities is $15,000. The exceptions are for financial institutions, financial institution groups, and insurance companies that have a maximum business privilege tax of $3 million.

No Inventory Tax

Alabama does not levy property tax on inventory. Raw materials and goods-in-process are also exempted.

Grants and Bonds for Infrastructure

Grants may be available for site preparation, water and sewer improvements, and industrial roads and bridge access for qualifying projects. Industrial Revenue Bonds financing can be available for part or all of the cost of land acquisition, site preparation, construction, equipment and other basic costs for qualifying new or expanding projects.

Visit the following sites for more materials: