Industrial revenue bond financing
Industrial Development Boards of local municipalities can issue industrial revenue bonds to finance the building and equipping of a new plant or the major expansion of an existing plant. These bonds are typically purchased by institutional investors, arranged through commercial banks or investment banking firms. By state law, the bonds are not government obligations and cannot be guaranteed by state or local government. Bond purchasers look to the company on whose behalf the bonds are issued for repayment; if the company is unrated, the bond purchasers look for a credit enhancement provided by the company, such as an irrevocable, standby bank letter of credit, to guarantee repayment.
Taxes & Fees
Alabama's maximum corporate income tax rate is 6.5%; federal income taxes paid or accrued are deductible, reducing the effective rate to approximately 4.8%. Investments in pollution control equipment also are deductible in computing Alabama income. There are no minimum state income tax requirements. Net operating loss carry-forwards are permitted.
The Gadsden-Etowah County Industrial Development Authority will help you obtain all the incentives for which your project qualifies. However, it is essential for state notification requirements to be fulfilled and for approvals to be in place before you incur project costs. Our staff can accomplish this quickly with a little information from you. The state also requires applicants to be enrolled in the federal E-verify program. Our local and state governments have a pro-business attitude, and have quickly approved 100% of the incentive applications submitted by the IDA for new and expanding companies.