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: