Taxes and Incentives

The following resources provide information about some of the tax requirements and incentives for businesses looking to locate to Lawrence County, Alabama and existing businesses planning expansions of their facilities within the county. For comprehensive information about local, state and federal tax requirements and available tax incentives, please contact us at 256-974-2899.

Lawrence County Tax Information:

Revenue Commissioner, Brad Henderson
750 Main Street, Suite 1
Moulton, AL 35650
Phone: 256-974-2501 | Fax: 256-974-2430

Alabama Department of Revenue

The Alabama Department of Revenue web site includes information about state tax requirements, state-wide tax incentives and online tax forms.

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Job Acts Incentives

Jobs Credit

Annual cash refund up to 3% of the previous year’s gross payroll for up to 10 years. In most cases, a project must generate up to 50 new jobs to qualify. If the desired county has a population of less than 25,000, the Jobs Credit incentive increases from 3% to 4%, and the length of the Investment Credit expands from 10 years to 15 years.

Investment Credit

Credit of up to 1.5% of the qualified capital investment costs for up to 10 years. Credit can be taken against the Alabama income tax liability and/or utility tax liability. For companies selling their output nearby, the credit is available for up to 15 years.

Other Incentives

Income Tax Education Credit

Allows an employer to take a tax credit for 20% of the cost of an employer-sponsored program to improve basic skills through the high school level.

Growing Alabama Credit

Approved projects are funded when taxpayers make contributions to a local economic development organization. Taxpayers receive a tax credit equal to their contributions. The tax credit may off¬set the taxpayer’s income tax liability, up to 50%. Credit can be carried forward for 5 years.

Reinvestment and Abatements Act

New Facility and Expansion

Abatement of non-educational portion of sales and use taxes on construction materials equipment and other capitalized costs. For the non-educational portion of the property tax, increases can be abated for up to 20 years. May also qualify for Jobs Acts Incentives.

Existing Facility: Refurbishments, Upgrades, or Placed Back in Service

Abatement of non-educational portion of sales and use taxes on construction materials, equipment and other capitalized costs. Abatement for up to 20 years of the non-educational portion of the incremental property tax increases. Abatement from taxes for increased utility services for up to 10 years. Includes AIDT worker training and the company may not apply for Jobs Act incentives.

Property Tax Abatement

New and expanding businesses qualify for the abatement of all the state and local non-educational portion of the property taxes. This includes all real and personal property incorporated into a qualifying project. Data processing center projects can receive an extended reduction, contingent on total capital investment in a project. Learn more about Alabama property tax rates and abatements.

Sales and Use Tax Abatements

Companies can abate all state and local non-educational portion of the sales and use taxes on the acquisition, construction and equipping of a qualifying project. For an extended reduction, data processing center projects qualify if they deal with constructing and equipping a project, including refresh. The incentive is contingent on total capital investment in a project. Learn more about Alabama sales and use tax abatements.

Full Employment Act Credit

Employers with less than 50 employees are eligible for a $1,000 nonrefundable income tax or financial institution excise tax credit for each job created that qualifies under the Full Employment Act Credit. Alabama income tax incentives.

Heroes for Hire Credit

Employers may qualify for a one-time $1,000 nonrefundable income tax credit, if they meet the requirements for the Full Employment Act and the employee is a qualifying veteran.

Income Tax Net Operating Loss Carryforward

Corporate income tax law allows companies to carry forward any net operating losses for up to 15 years.