From the Governor
“Great companies from around the world recognize that Alabama is the ideal destination to carry out their growth plans because of the many advantages we can offer them. Alabama is open for business, and we plan to keep pursuing economic development projects that lift families and communities.” —Gov. Kay Ivey
Manufacturing New Opportunities from Foreign Investment
The Cotton State experienced record economic growth in 2018 with 71 projects and 286 expansions worth more than $8.7 billion in capital investment. That trend continued in 2019, and roughly half comes from direct foreign investment, with South Korea, Japan, Germany and Canada being the top contributors. Alabama re- mains a leading state in auto manufacturing, with new investments by Mazda-Toyota and Mercedes-Benz. The space cluster in Huntsville is also growing with a recent investment by Blue Origin.
Alabama Jobs Act: Offers an annual cash rebate of up to 3% of the previous year’s gross payroll for projects creating at least 50 net new jobs, and an annual income tax credit of up to 1.5% of the qualified capital invest- ment for projects for up to 10 years.
Workforce Development: Offers pre-employment screening and training, and an apprenticeship tax credit of up to $1,000 per qualifying apprentice. An employer can claim up to five apprentices, up to $5,000 annually.
Port Credit: Offers a one-time income tax credit of up to $50/TEU, $3/net ton of bulk cargo, or $.04 net kilogram of air cargo for shippers engaged in manufac- turing, warehousing or distribution of goods.
Abatements: Offers a property tax abatement of non-education portion of state and local property taxes for up to 20 years and a sales tax abatement on construction materials and equipment.
Economic Development Association of Alabama: edaa.org
Economic Development Partnership of Alabama: edpa.org
Alabama Department of Commerce: madeinalabama.com
Birmingham Business Alliance: birminghambusinessalliance.com
Montgomery Chamber Economic Development: prod.montgomery.cciconstellation.net/Home.aspx
Highlighted Program or Initiative
Gov. Ivey’s “Strong Start, Strong Finish” initiative was announced in July 2017 and makes improving education a top priority to lay the ground work for the workforce pipeline. In June 2019, the state expanded its Apprenticeship Alabama Tax Credit, and the U.S. Department of Labor selected the Alabama Community College System for a $12 million grant to build a partnership with the National Association of Manufacturers.
- Mazda Toyota Manufacturing USA is currently con- structing a $1.6 billion assembly plant in Huntsville which will create 4,000 jobs and produce more than 300,000 vehicles annually.
- Amazon is constructing $325 million fulfillment center in Bessemer that will create 1,500 jobs.
- Blue Origin announced in January 2019 the creation of 300 jobs and a $200 million plant in Huntsville to produce the BE-4 rocket engine.
- Auto supplier YKTA announced in May 2019 a $220 mil- lion investment and 650 new jobs at a manufacturing facility in Huntsville.
- Hyundai celebrated in May 2019 the opening of a $388 million engine facility in Montgomery that created 50 jobs.
- Facebook announced in June 2018 a $750 million data center in Huntsville that will create up to 100 high-paying jobs.
- Airbus announced in August 2019 it has begun manufacturing A220 aircraft at its production facility in Mobile and will add a second assembly line and hire 400 workers.
Regions Financial (Fortune 500 headquarters)
“It is because of our workforce and statewide partner- ships that Toyota has continued to grow and prosper in Alabama.” —David Fernandes, Former President, Toyota Alabama
“Huntsville is a great place to build a future—and that’s what we are doing with our expansion here.” —Eileen Drake, CEO, Aerojet Rocketdyne
“Alabama has a talented workforce, and we look for- ward to making a positive economic impact in a state where we are committed to providing great job op- portunities and an exceptional customer experience.” —Mark Stewart, Vice President of North America Customer Fulfillment, Amazon