Alabama R&D State Tax Credit

Refundable/Transferable Tax Credit – No

Alabama does not provide a credit for Research & Development. However, effective July 2, 2015, the Alabama Jobs Act provides incentives to qualified businesses for approved projects that create new jobs in Alabama, including those conducting space research. Any corporation, partnership, limited liability company, proprietorship, trust or other business entity, regardless of form, is allowed an annual credit of up to 5% of the capital costs of a qualifying project against the state income tax or financial institution excise tax liability generated by or arising out of the qualifying project in each of the 20 years commencing with the year during which the qualifying project is placed in service and continuing for 19 consecutive years thereafter.

Find out if you qualify for the R&D tax credit

SELL YOUR NOL’s AND R&D CREDITS

If your company hasn’t considered the R&D credit in the past because you have net operating losses (NOLs) and could not utilize the credit contact us today to find out which states allow you to sell your credits and losses for up to 95 cents on the dollar. Also, qualified start-up companies can now take a credit on their payroll taxes for their R&D credit, allowing your company to utilize the R&D credit immediately, even if your company does not have taxable income.
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