HUNTSVILLE — “The Alabama Jobs Act has been a huge success for North Alabama,” said Madison County Commission Chairman Dale Strong.
Enacted in 2015, the legislation is a performance-based tax incentive that provides income credits for businesses based on their job and investment creation.
“Prior to its passage, we lost out on several projects to states that had already passed similar legislation,” said Strong. “Without the Jobs Act, we would not even have been competitive on the Mazda Toyota project.
“At the end of that process, we didn’t have the best package financially, but it kept us in the game and we won based on our quality of life, a great site and an entire region ready to support it.”
The Mazda Toyota Manufacturing Plant is credited with creating 4,000 jobs with an average salary of $50,000, according to the Department of Commerce.
With bipartisan support, the Alabama Jobs Act was expanded by the Alabama Legislature during the 2021 session.
“The Alabama Jobs Act is vital to North Alabama’s ability to continue to attract new and innovative industries. In return, these investments will equal higher wages and a better quality of life for our citizens,” said State Rep. Andy Whitt (R-Harvest). “Under the legislation, tax credits are available to pharmaceutical, biomedical, tech companies, and related research and development activities.
“This is a win-win for our state, but more importantly, our Huntsville and North Alabama based companies. With the Alabama Jobs Act, this will spur further industry growth and return dividends for decades.”
In a statement to Yellowhammer News, Alabama Department of Commerce Secretary Greg Canfield provided a summary of the program since its inception. Based on the data, the Alabama Jobs Act incentives are projected to create a 173% return on taxpayer investment within 20 years.
“The Alabama Jobs Act was designed to enhance accountability and ensure that the state is receiving a financial benefit from projects receiving incentives,” said Canfield. “Between July 2015, when it went into effect, and the end of 2021, projects supported by the Jobs Act have generated commitments for over $17 billion in new capital investment and 34,000-plus jobs.
“Moreover, these are good jobs for Alabamians. Commerce calculates that the average hourly wage of jobs in projects receiving incentives under the Jobs Act between 2015 and 2021 is $23.69. That is 36% higher than the Alabama average median hourly wage of $17.43.”
Alabama is consistently listed as a “Top State” for doing business by Area Development, an industry-leading publication. The list from a panel of consultants who aid businesses with location decisions. Alabama was ranked No. 6 overall in 2021 and No. 3 in the nation for its business incentive programs.
A report from the Study Commission on Renewing Incentives is due by Jan. 31, in advance of the next legislative session. The commission was established by the Alabama Legislature in the 2022 session. It is responsible for reviewing existing economic incentives and making recommendations ahead of the 2023 session.
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