Tax Abatement Information
Alabama offers partial tax abatements (Education taxes are not abated) to new and expanding businesses that meet Statutory Requirements. These abatements are generally approved via local Industrial Development Boards but there are exceptions. Partial Sales Tax abatements on construction materials and new equipment purchases may also be available for qualifying projects.
In most cases, facilitation for local and state incentives – including pre-notifications to state agencies if needed – is handled by the Baldwin County Economic Development Alliance (the Alliance). The Alliance works closely with local Industrial Boards and City/Town Boards in preparing appropriate paperwork and notices related to incentives.
For additional information, you may contact their office at the numbers listed below or visit the website at https://baldwineda.com/why-baldwin/incentives/
Baldwin County Economic Development Alliance
(251) 970-4081 or 800-947-2445
For information regarding the laws/rules on Tax Abatements, please visit the Alabama Department of Revenue’s website at www.revenue.alabama.gov or contact Kelly Graham, Office of Commissioner at (334) 242-1188 or Ashley Moon at (334) 242-1184 in Montgomery, Alabama.
* * * * * * * * * * *
Once a Tax Abatement has been granted, Baldwin County Sales & Use Tax Department notifies the business of the non-abatable tax rates which are indicated below:
Baldwin County Sales Tax & Consumer's Use Tax Rate Change – Effective June 1, 2018
Non-Abated Education Rates
Sales Tax - 2.44% General Rate & 1.11% Auto/Farm/Machine (Not Abated - Education)
Certificate holders who purchase supplies and/or equipment within Baldwin County will be required to remit 2.44% Sales Tax and/or 1.11% Sales Tax to Baldwin County Sales & Use Tax Department.
Consumer's Use Tax - 3% General Rate & 1.25% Auto/Farm/Machine (Not Abated - Education)
Certificate holders who purchase supplies and/or equipment outside of Baldwin County will be required to remit 3% Consumer's Use Tax and/or 1.25% Consumer's Use Tax to Baldwin County Sales & Use Tax Department.
All supplies/equipment must be delivered by the supplier/vendor to the job site located in Baldwin County.
If you have any questions regarding the non-abated tax rates for Baldwin County, please contact Shelby Middleton at (251) 943-5061, Ext. 7654.