Innovate Alabama opens tax credit program

MONTGOMERY — Innovate Alabama is launching yet another program to aid the state’s “innovative and underrepresented” small businesses.

Thanks to Gov. Kay Ivey’s “Game Plan,” the organization was able to start the Alabama Tax Credit program.

The tax credits from the new program will be given to economic development organizations throughout the state, who will then be allowed to offset as much as 50% of donor’s state income, financial institution excise, insurance premium or utility taxes. The program will be expanding on the success of the Alabama Department of Commerce’s Growing Alabama program.

“I’m excited to see this critical piece of the Growing Alabama tax credit program transition into the Innovate Alabama Tax Credit program to provide gap funding for these crucial partners,” said Innovate Alabama CEO Cynthia Crutchfield. “Through this program, we can continue to serve the innovative small businesses of Alabama and show that our state is open for business to other such companies looking to relocate.

“We are dedicated to working with governmental leaders to create a ripe ecosystem for tech accelerators and businesses to thrive.”

Alabama House Minority Leader Anthony Daniels said the  program will aid investments in the state’s small businesses.

“We saw an opportunity to increase the impact of tax credits to incentivize investment in small businesses and tech accelerators doing groundbreaking work in our state, and the Innovate Alabama Tax Credit does just that,” said Daniels (D-Huntsville). “These organizations are essential to the work Innovate Alabama is doing to help innovators grow roots in Alabama.

“This new tax credit driven by Innovate Alabama can help us uplift underrepresented entrepreneurs and incentivize and grow innovative industries right here in Alabama.”

Applications will close June 16. For more information, click here.