Taxes & Incentives

The following includes basic information about the state level tax incentives that are available.  Local incentives are offered on a per-project basis and are available for both new and expanding industries.  For more information about state and local incentives or tax rates, contact the Evergreen-Conecuh Development Corporation at 251-578-1000.

Click the buttons below to learn more about each tax or incentive.


Starting a New Business

If you are starting a new business and need assistance, there are several resources available for you.  A Small Business Administration office is located within the city and additional services are offered through the Evergreen Conecuh County Chamber of Commerce.

View the following resources for more information:

Resources

Information about statewide taxes and incentives can be found using the following resources:

Alabama Renewal Communities Program

Conecuh County is part of Alabama's Renewal Communities Program, which provides additional state incentives to qualifying companies.  For more information about this program, visit the ADECA website.

Incentives include:

  • $1,500 per employee wage credits
  • Accelerated depreciation
  • Increased equipment deduction
  • Capital gains tax exclusion

Rural Community Development Initiative – USDA

This is a USDA program that provides additional state level incentives for qualifying businesses.  For more information, visit the USDA Rural Development website.

Incentives include:

  • Project sales tax abatement
  • Property tax abatement for a minimum of 10 years
  • Income tax credits

Favored Geographic Area

Conecuh County is designated as a Favored Geographic Area in Alabama.  This program was created to provide extra incentives for new business locating in the designated areas or companies who are expanding.  The program allows qualifying companies to take advantage of the Capital Investment Tax Credit with lower investment and job creation thresholds.

Download the Favored Geographic Area brochure provided by EDPA, for more information about the Favored Geographic Area program.


Corporate Income Taxes

  • Rate is 6.5%
  • Based on net taxable income of business done in Alabama
  • Businesses can deduct all of their federal income taxes apportioned to Alabama

Incentives include:

  • Net operating loss carryforward
  • Deduction for pollution control equipment
  • Income tax capital credit
  • Basic skills educational tax credit

Income Tax Capital Credit

The income tax capital credit is available to new and expanding industries and companies can receive up to 5% credit for the total capital costs.  This credit is available every year for 20 years.

Visit the Alabama Department of Revenue website for a full overview of this incentive.


Business Privilege Tax

  • Based on net worth in Alabama
  • Based on a corporation's ability to pay
  • Rate ranges from $.25 to $1.75 for each $1,000 of net worth in Alabama

Incentives include:

  • Deduction for pollution control equipment
  • Deduction for air carrier with hub operation

State Unemployment Tax

  • Employees do not contribute
  • Employer requirement is based on first $8,000 of each employee's compensation
  • Rates vary from 0.5% to 5.4%
  • New employer rate is 2.7%
  • Rates are based on employer's experience rating

Sales and Use Tax (General)

Inventory and goods-in-process are not taxed.  For other sales and use tax information, visit the Alabama Department of Revenue website.
Conecuh County* Alabama
Sales Tax 2% 4.0%
Use Tax 2% 4.0%
Sales Tax on Machinery 0.2% 1.5%
Use Tax on Machinery 0.2% 1.5%

*Outside incorporated area. 

Source: EDPA and the Alabama Department of Revenue

Incentives Include:

  • Abatements of state and noneducational local construction-related sales and use taxes
  • Discount if sales tax is timely paid
  • Exemption for raw materials
  • Exemption for pollution control equipment
  • Exemption for quality control testing and donations to charitable entities
  • Utility gross receipts tax exclusions
  • Enterprise Zone credit

Click here to view the Abatement Booklet provided by the Alabama Department of Revenue.


Property Tax

Total State 6.5
Total Conecuh County 18.0
Total School (District 1) 10.0
Total School (District 62) 10.0
Evergreen 10.0
Per Acre (Statewide) Timberland Tax $.10

Source: Alabama Department of Revenue

Incentives:

  • Abatements for noneducational property taxes
  • Exemptions for pollution control equipment
  • No property taxes on inventory (some restrictions apply)
  • Exemptions for raw materials inventory