Shoals Economic Development Authority

DOING BUSINESS
IN THE SHOALS

Economic Data

Business Climate

Shoals Economic Development Authority

Phone:
(256) 764-0351
1-800-239-6087
FAX: (256) 764-3850
20 Hightower Place
Suite 1
P.O. Box 580
Florence, Alabama 35630

E-mail:

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INCENTIVES

The State of Alabama and the local community offer a variety of incentives designed to meet the needs of new and expanding industries. The type and amount of incentives are based upon needs of the company and the potential impact their presence will have on the area. The Shoals has aggressively sought new and expanding manufacturing investments over the past several years using a variety of incentives. The most advantageous incentive is the investment the community makes in its people and its infrastructure. Municipal services are well maintained with excess capacity to meet current and future demands. We are committed to the belief that companies, first and foremost, look for healthy communities that can provide the support necessary to become and remain profitable.

Real and Personal Property Tax Abatement
The Tax Incentive Reform Act of 1992 Section 40-9B-1 et seq., Code of Alabama 1975, gives local governing bodies the authority to abate non-educational related real and p property taxes on manufacturing investments that provide jobs and create wealth in a community. The local industrial development board will consider abatement of the non-educational related real and personal properties for a period of up to ten years.

Sales Tax Abatement
The Tax Incentive Reform Act of 1992 Section 40-9B-1 et seq., Code of Alabama 1975, allows local governing bodies to abate non-educational related sales taxes on private use industrial property that has not been previously placed into service. The local industrial development board will consider abatement of all non-educational related sales taxes on eligible equipment, building materials, and supplies purchased prior to the date the entire project is placed into service.

Utility Tax Abatement
Electricity used by a manufacturer in an electrolytic or electro-thermal manufacturing process is exempt from the 4% State of Alabama utility tax. Natural gas, which becomes a component of tangible personal property manufactured and natural gas used by a manufacturer to chemically convert raw materials prior to using them in an electrolytic or electro-thermal manufacturing process, is not taxable. The Alabama Department of Revenue makes the determination on this exemption.

Industrial Development Grant
The State of Alabama has set funds aside to assist in the initial preparation of sites for manufacturing growth. Grant money p provided may be used for preparation of access to the site; provision for adequate drainage to prevent the accumulation of excess natural waters; boundary and topographical surveying, clearing, and excavating; the reasonable rehabilitation of buildings and other structures; and, other work relative to site preparation deemed necessary and appropriate.

The grant is based upon total project cost with the maximum amount available capped at $150,000. (Alabama Act No. 99-591.)

Capital Investment Tax Credit
The State of Alabama offers a capital investment tax credit for qualifying firms to claim tax credit against Alabama income tax liability generated by or arising out of a qualifying Alabama project. Up to 5% of the total project capital investment can be deducted annually from State of Alabama corporate income tax generated by the operation over a 20-year period. The "Large Business Project Criteria" states that the project must have a minimum $2,000,000 capital investment and 20 new full-time jobs to occur not later than one y ear after the project is placed in service. Average hourly wage must be $8.00 or average total compensation should be $10.00 per hour.

Industrial Access Road or Roadway Modification
The State of Alabama operates a program whereby funds are available for industrial access should the need arise. These improvements are generally made with little, if any, costs to the company. Local governmental entities will partner with the State of Alabama in engineering and constructing access to the property.

Reduced Electrical Rates
Large consumers of electricity are eligible to take advantage of TVA's Enhanced Growth Credit Program. The project could qualify for a rate reduction of $6.00 per kW demand.