Angela TillDeputy Secretary

Alabama Department of Commerce

Alabama Department of Commerce

• Greg Canfield, Secretary of Commerce

• An extension of the Governor’s office

• Responsible for leading and maintaining Economic Development across the state as liaisons for new, potential, and expanding businesses

• Includes:Business Development International TradeSmall Business AdvocacyAIDTFilm Office

Alabama’s Team Approach

Alabama Department of Commerce

Local Economic Development Organizations Economic Development Partnership of Alabama (EDPA)

Alabama Industrial Development Training (AIDT)

Universities, Community Colleges & Pre-K - 12

Alabama Marketing Allies

Department of Revenue

Department of Environmental Management (ADEM)

Department of Economic and Community Affairs (ADECA)

Chambers of Commerce

Alabama Then…..

Alabama Today…

2014

392 Projects Announced

$3.4 Billion in New Capital Investment

18,137 New Future Jobs

Alabama International Trade ResultsAlabama exports held

steady for 2014 coming in at $19.5 billion, just shy of the all-time record high of $19.6 billion in 2012.

Surged 115 percent since 2004

Alabama-made products reached 200 countries

Accelerate Alabama

•Released January 2012•Includes input from nearly 1,200 individuals•Identified 11 target business sectors•Utilizes existing assets such as:

Colleges and Universities Community College System Workforce Development Organizations Local Economic Development Groups

Alabama’s strategic five year plan to drive economic development

Key Drivers

• Recruitment - Attraction of new business and industry

• Retention - Retention and expansion of existing business and industry

• Renewal - Job creation through innovation, entrepreneurship, research and development, and commercialization

Targeted Industry Sectors

Supplier Support Team

Alabama Jobs ActAct 2015-27

• Effective July 2, 2015• Jobs Credit

• Cash rebate up to 3% of previous year’s payroll for up to 10 years• Additional .5% on wages of veterans for companies who employ a

workforce of at least 12% Veterans• Up to an additional 1% for projects in Targeted Counties

• Investment Credit• Credit of up to 1.5% of Capital Investment for up to 10 years• Credit against income tax and/or utility tax• Can be carried forward for 5 years• If approved, the first 3 years can be sold

Qualifications for Alabama Jobs Act

• Must create new jobs• At least 50 for most projects• 25 in Targeted County• Any number of jobs for chemical manufacturing, data centers,

metal/machining, engineering, design and research projects

• Jobs Act Incentives are discretionary • The project’s tax payments must exceed the tax incentives sought• Project Agreement with clawbacks is required• Future incentives granted can never exceed $850 million

• Legislative oversight is required and Jobs Act incentives will expire 12/31/19 unless renewed

Targeted Counties

• Counties having a population of less than 25,000 (currently 25 counties)

• Only require 25 new jobs for Jobs Act• Projects may receive an extra 1% Jobs Credit• Up to 15 years Investment Credit for projects selling

their output nearby• State Industrial Development Authority can make loans

to fund site prep• Capped at $20M• Up to $2M for 25+ jobs• Up to 1M for less than 25 jobs

Questions?