The state of Alabama and Morgan County are working to create one of the most favorable business climates to be found in the United States and to compete globally. It is recognized as having a low tax structure, streamlined regulatory environmental permitting procedures, and favorable business development incentives.

Start-up and Small Business Advantages

Start-up businesses have found great success by utilizing the Decatur-Morgan County Entrepreneurial Center. Both public and private resources are available to support the needs of small businesses. Services include secretarial services, automated office equipment, security, maintenance, telecommunication equipment, utilities and business consulting services. Manufacturing space is available. Click here for more information.

Fully served industrial and business parks, as well as many buildings are available for review. For more information, please contact the MCEDA office at 256-353-1213.

MCEDA is committed to supporting our existing industries. Through our established Existing Industry Program, we work to provide a variety of services to help meet industry needs. Our services are constantly being updated and revised based on feedback we receive from our company visitation program.

The services our office provides include:

• Assistance with tax abatements and incentives for expanding industries
• Workforce development support including training classes and high school presentations on careers in manufacturing
• An annual wage survey
• Industry appreciation events
• Recognition and promotion of industry achievements throughout the year
• Knowledgeable staff that act as a liaison to city, county, state and federal agencies

During fiscal year 1986-87 Governor Guy Hunt signed the deeds that transferred the Alabama State Docks in Decatur to the Port Authority. The State Docks site consisted of the docks and approximately 90 acres of industrial property. The development of phase one and two were completed in 1996. Global Materials Services began operating the State Docks port facility in October 2002 and then by Kinder Morgan when they acquired Global Materials.

In the late 1980’s and early 1990’s the Port Authority was heavily involved in developing the 1,000+ acre Mallard-Fox Creek Industrial Park and Port. The first industry, Hispan, announced they would locate in the park in July 1988. Construction of phase one of the port facility began in November 1990. The dock facility has 320 feet of river frontage and is large enough to allow two barges to offload at one time. In August 1992 the bid to lease the port facility was awarded to Hill’s Marine Enterprises, Inc. who operated the port until 2000. In April 2000 the operation of the port facility was transferred to Global Materials Services LLC (GMS). Global Materials was acquired by Kinder Morgan Energy Partners in October 2004. Kinder Morgan now operates the Mallard-Fox Creek port facility and the State Docks port facility.

Port Authority Board of Directors

The Decatur-Morgan County Port Authority is controlled by a four member Board of Directors.  They are appointed by the City of Decatur and the Morgan County Commission and serve 5 year terms.  Directors are eligible for re-appointment by the governing body by which they are initially appointed.

• Larry Bennich
• Harvey Pride, Jr.
• Orval Dee Proctor
• Jimmy Ray Smith
• Tim Lovelace

Income Tax Capital Credit

The capital credit is a statutory incentive that gives credit of five percent (5%) of the capital costs of a qualifying project, to be applied to the Alabama income tax liability generated by the project income, each year for 20 years. Learn more about the Capital Credit on the State of Alabama web site.

Property and Sales Tax Abatements

This statutory incentive gives cities, counties, and public industrial authorities the ability to abate the following:

• State sales and use taxes
• Non-educational county and city sales and use taxes
• Non-educational state, county, and city property taxes - up to 10 years
• Mortgage and recording taxes

To receive an abatement for any or all of these taxes, a business must meet certain qualifications such as capital investment, SIC code requirements and follow certain procedures, as determined by law and regulation. Learn more about the Property and Sales Tax Abatements on the State of Alabama web site or download the Abatements Guide (PDF).

Income Tax Incentives

The rate of corporate income taxation is 6.5%. Alabama still maintains one of the lowest corporate income tax rates in the nation and includes incentives such as the net operating loss carry-forward and educational credits. Learn more about Income Tax Incentives on the State of Alabama web site.

Sales and Use Tax Incentives

Incentives for Sales and Use Tax are available to qualifying industries to receive abatements of state and non-educational county and city construction-related sales and use taxes. In addition, incentives are available for the purchase of pollution control equipment and raw materials. Learn more about Sales and Use Tax Incentives on the State of Alabama web site.

Property Tax

Property taxes for all real and personal business property are assessed at 20% of fair market value. Millage rates vary throughout Morgan County with the average rate of 41 mills. For real and personal business property with a fair market value of $1,000,000 the average property tax would be only $8,200 ($1,000,000 * 20% * .041).

State law allows qualified industries (based on capital investment and NAICS code) to receive abatements of non-educational property taxes for new businesses locating to Alabama, and for expansions of existing facilities in Alabama. These abatements are granted locally on an individual basis and can be granted for a period of 10 years.

Additional exemptions are available for pollution control equipment, raw materials, finished goods, and inventory.  Click here for details.

Projects could potentially qualify for site preparation grant funds. These funds can be used for the preparation of a site including: (1) providing access to the site; (2) providing adequate drainage of the site; (3) boundary and topographical surveying, clearing and grubbing, and excavating; (4) the reasonable rehabilitation of buildings and other structures; and, (5) other work relative to site preparation deemed necessary or appropriate. The amount of funds provided through the grant will be a percentage of the capital costs involved in the qualifying project.

Industrial Access Road and Bridge Program

This program administered by the Department of Transportation (DOT) provides financial assistance to assist in transportation access to a new and/or expanding industry. Eligible industrial access projects may be new road construction or a road improvement such as a turn lane, deceleration lane, paving of an unimproved road, widening, resurfacing bridge replacement etc. Project funding is dependent upon annual DOT budgetary funding and is only applicable to proposed roads that will become part of the public highway and street system of the state.

USDA Rural Development

USDA Rural Development Services consist of loan, grant and loan guarantee programs plus technical assistance for industry, cooperative development, housing community facilities development and telecommunications.

Programs for business development include small business grants, business opportunity grants, direct loans, loan guarantees, and an intermediary re-lending program.

North Alabama Regional Council of Governments (NARCOG)

NARCOG assists local communities with obtaining funding for projects that promote economic development and quality of life. In addition, NARCOG operates a Revolving Loan Fund for the purpose of assisting small local businesses and industries in their start-up and expansion activities. The goal of the program is to create new jobs for citizens in the NARCOG Region.

Environmental Permitting

The Alabama Department of Environmental Management (ADEM) serves as a one-stop shop for environmental permitting in the State. ADEM administers all major federal environmental laws. They help to streamline the regulatory environmental permitting procedures and serve as a single point of contact for all state environmental regulations.