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Tax Credit Program

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About
Eligibility
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Recipients
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Next Deadline

Tuesday, May 21 (notional)

Questions

incentives@innovatealabama.org

About

To create a flourishing ecosystem in Alabama where tech accelerators and businesses thrive, Innovate Alabama offers tax incentives to help entrepreneurial support organizations do what they do best: provide the tools, resources and opportunities that help founders level up their companies.

The Innovate Alabama Act, found in Section 41 – 10-840, et seq., of the Code of Alabama, creates an incentive mechanism to provide funds to economic development organizations (EDOs) for certain qualifying activities. Alabama taxpayers who make cash contributions to EDOs for qualifying projects receive an Innovate Alabama Tax Credit that can offset up to 50% of the following tax types:

Income tax
State portion of the financial institution excise tax
Insurance premium tax
State utility license tax

Qualifying EDOs must submit an application to Innovate Alabama, as well as commit to sending a status letter. Taxpayers donating to EDOs for approved projects receive a credit equal to their donation and may carry the credit for up to five years. The credit may be passed through to individual owners, shareholders, partners or members of an LLC.

Download Status Letter Template

program summary

Eligibility

An “economic development organization” is a state or local development organization meeting each of these three criteria:

Is an Alabama entity not operating for a profit; and
Is charged with improving the state or a region of the state; and
Has a record of supporting or otherwise participating in economic development efforts in Alabama

Apply

Please stay tuned for details on the next round of applications.

Successful applicants can access their funds on the My Alabama Tax Portal.

Please direct questions on the Innovate Alabama Tax Credit Program to incentives@innovatealabama.org.

Apply

Innovate Alabama Tax Credit Recipients

Innovate Alabama Tax Credit recipients include the following EDOs. This list will continue to evolve as Innovate Alabama approves additional recipients in future rounds.