State of Alabama IndustrialDevelopment Authority Site Grant Program
Alabama act 97-645 expanded the Alabama Site Preparation Grant Program to increase the amounts available for qualifying companies, increase the types of businesses which may qualify, and increase the activities for which the funds may be used.
Grants can only be made to counties, municipalities, local industrial development boards or authorities or economic development councils or authorities, airport authorities, port authorities or public corporations or political subdivisions, departments or agencies of this state authorized to own or possess by lease a project site. In order to be eligible for an Industrial Development Grant, the grantee must hold title to the project site that the qualifying project will occupy.
To attract a new industry, or to assist an existing company with an expansion, the funds may be used to prepare sites including:
*Preparation of a means to access the site
*Provide adequate drainage of the site
*Surveying, clearing and excavating
*Reasonable rehabilitation of buildings and other structures
*Other site preparation deemed necesssary and appropriate
To qualify for an Industrial Development Grant an investing company must be:
*Headquarters for a national, regional or state investing company
*A process or treatment facility which recycles, reclaims or converts materials to a reusable product.
*An industrial, warehousing or research activity meaning any trade or business falling in the Standard Industrial Code classifications Major Groups 20 through 39,
Major Groups 50 and 51, Industrial group 737, and Industry Numbers 0724, 8731, 8733 and 8734.
Amount of grant depends upon amount of capital investment as defined by Act 97-645.
CAPITAL COSTS SIZE OF GRANT = % OF PROJECT COST OR LIMIT
- Less than $200,000 6%
- $200,000- $499,999 5% (minimum $12,000)
- $500,000- $999,999 4% (minimum $25,000)
- $1,000,000- $1,999,999 3% (minimum $40,000)
- $2,000,000- $9,999,999 2% (minimum $60,000; maximum $150,000)
- $10,000,000- $24,999,999 1.5% (minimum $150,000)
- $25,000,000 or greater Maximum $375,000