The Alabama Enterprise Zone Act Credit is a business tax incentive designed to encourage companies to locate or expand in designated Enterprise Zones within Alabama.
A business may qualify if it:
- Operates in a designated Alabama Enterprise Zone.
- Creates new permanent jobs.
- Meets the requirements established by the Alabama Department of Economic and Community Affairs (ADECA).
- Receives approval for the Enterprise Zone incentive program.
Who Can Claim the Credit?
The credit may be available to:
- Corporations
- Partnerships
- Sole proprietorships
- Other qualifying business entities operating within an approved Enterprise Zone project
What Is the Credit Amount?
The Section 5 Enterprise Zone Credit can provide a credit of up to $2,500 per qualifying new permanent employee, subject to program requirements and limitations.
What Information Will I Need?
If your business has been approved for the Enterprise Zone program, keep copies of:
- Approval documents from ADECA
- Enterprise Zone certification information
- Employment records supporting the credit
- Any calculations provided by the program administrator
Important
Most Alabama taxpayers will not qualify for this credit. It is intended for businesses that have received approval under the Alabama Enterprise Zone Program and meet specific location, investment, and employment requirements.
For additional information, see the Alabama Department of Revenue Enterprise Zone Program page: https://www.revenue.alabama.gov/tax-incentives/enterprise-zone-incentives/
For more information see the Schedule OC Instructions.