Our competitive tax structure and many incentives create a favorable environment for new and existing companies.
We at the Tuscaloosa County Economic Development Authority are eager to help businesses grow and innovate profitably. Contact us about how we can help you maximize tax and non-tax incentives, including tax abatements and credits, financing resources, and workforce training services. Specific local incentives are summarized below, and more detailed information can be found on the Alabama Department of Revenue website.
Local Tax Advantages
Sales Tax
Varies depending on municipality
State: 4%
County: 3%
Tuscaloosa, Northport, Brookwood, Coaling: 3%
Lakeview, Vance, Coker: 2%
Incentive: 7.65% or 8.65% eligible for abatement to qualifying companies during the construction phase of the project
Property Tax
Property assessed at 20.0%
City of Tuscaloosa: 51.5 mills
City of Northport: 38.5 mills
Tuscaloosa County: 27.0 mills
Brookwood/Vance/Moundville: 32.0 mills
Incentives include:
Tax abatement available to qualifying companies for up to 10 years for non-educational property taxes
City of Tuscaloosa: 27.5 mills eligible for abatement
City of Northport: 25.5 mills eligible for abatement
Tuscaloosa County: 14.0 mills eligible for abatement
Brookwood/Moundville: 19.0 mills eligible for abatement
No property taxes on inventory
Use Tax (Manufacturing)
State and Local: 3.375% or 3.75% in most areas
Incentive: 2.865% or 3.24% eligible for abatement to qualifying companies during the construction phase of the project
Bonds
Tax-exempt industrial revenue bonds (IRBs) of up to $10 million may be issued by our organization to finance up to 100% of new and expanding manufacturing projects.
Taxable industrial revenue bonds with fewer restrictions and in unlimited amounts may be issued by our organization for transactions that do not qualify for tax-exempt bond financing.
Solid waste and sewage disposal bonds can be structured to the extent an engineering study justifies treating a portion of plant costs as attributable to solid waste or sewage disposal.
State of Alabama Taxes & Incentives
The state of Alabama offers many grants, credits, workforce training resources and other incentives. Learn more on the Made in Alabama website.
